McDonald's Bets on New $3.50 Meal Bundles After Traffic Slips

By Olivia Hart

McDonald's will roll out new value meal bundles early next year, betting that items like a $3.50 McChicken-and-small-fries pairing can reverse a slide in U.S. traffic. The move follows a third quarter in which same-store sales in its home market fell 0.2%, the company's first retreat since early 2025.

The decline was smaller than the 0.5% drop Wall Street expected, and investors took heart: shares rose more than 5% in morning trading Wednesday. But a beat against lowered expectations is not a recovery, and the Chicago-based chain knows it.

CEO Chris Kempczinski told investors on a Wednesday conference call that McDonald's began an eight-week test of mix-and-match and fixed-price bundles at 1,900 U.S. restaurants. Roughly 4,000 franchisees declined to wait for the test data and have already launched bundles of their own, he said.

"Customers should see a clear and compelling value proposition every time they consider McDonald's, whether they're looking for an affordable individual item, a complete meal or a digital offer in the mobile app," Kempczinski said.

What went wrong with the last value push?

McDonald's has spent more than two years retooling its U.S. value menu to win back lower-income customers and keep pace with rivals such as Taco Bell, whose menu lists 10 items at $3 or less. The company's own timeline is dense:

• June 2024: launch of the $5 Meal Deal
• 2025: debut of the McValue menu and Extra Value Meals, promising a 15% discount versus buying items individually
• April: a McValue revamp adding 10 items priced at $3 or less

Yet adoption lagged. Franchisees own 95% of McDonald's U.S. restaurants, and in August Kempczinski acknowledged that only 60% of U.S. locations were serving the revamped McValue menu. The company replaced its U.S. president that same month.

The CEO was blunt about why prior efforts fell short: they lacked compelling deals at the bottom of the price ladder.

"You need to have good entry-level value, particularly with the low-income consumer," Kempczinski said.

How weak is the fast-food consumer?

The pressure is not McDonald's alone. U.S. fast-food foot traffic fell 2.6% across the sector in the third quarter, according to Revenue Management Solutions, a restaurant industry consultant. Americans squeezed by higher gas prices and a high cost of living are cutting restaurant visits.

McDonald's softened the blow by restoring some regional and national in-app deals and shifting marketing spending toward value meals. Those moves pushed same-store sales into positive territory in September and October — a two-month trend, not a confirmed turnaround.

What do the numbers say?

The quarter's headline figures show a company growing profit while revenue stalls:

• Global same-store sales rose 1.3%, with strength in Germany and Australia offsetting weakness in France, where protests began in September
• Revenue rose 1% to $7.16 billion, missing Wall Street's $7.28 billion forecast
• Net income rose 9% to $2.49 billion
• Adjusted earnings of $3.57 per share beat the analyst forecast of $3.38

The profit beat alongside a revenue miss suggests cost discipline is carrying results while customer demand waits for cheaper food.

The eight-week test, and whether the company can get more than 60% of its franchisee-run restaurants behind a single value platform, will decide if early next year's launch changes the trajectory or joins the pile of earlier value menus.