McDonald’s is making another move to keep menu prices lower

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Conway Gittens: I’m Conway Gittens, reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

The S&P 500 is on a winning streak — up four days in a row. Market gains were modest ahead of the Federal Reserve’s upcoming interest rate decision, but the rally was enough to suggest Wall Street is comfortable with the idea of ​​an expected quarter-point cut by the Fed.

Consumer sentiment will take center stage on Friday with the University of Michigan’s August preliminary reading on consumer sentiment.

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And speaking of consumer attitudes, McDonald’s customers have spoken, and it seems the company heard them loud and clear. The burger chain has announced that it will extend its $5 meal deal through December.

McDonald’s first introduced the $5 deal in June as a month-long promotion, but quickly expanded it into a summer deal. The offer allows customers to choose either a McChicken sandwich or a McDouble cheeseburger, fries, 4-piece Chicken McNuggets and a small soft drink.

The president of McDonald’s USA said, “Together with our franchisees, we’re committed to keeping our prices as affordable as possible, which is why we’re doubling down with even more ways to save.”

The fast-food giant had previously been able to raise menu prices without seeing a big drop in sales, but that changed as inflation remained persistent. The problem is not just McDonald’s. The entire industry – with a few exceptions – has had to change its tune. Earlier this year, CEO Chris Kempczinksi said it was simply more affordable for customers to eat at home. This dynamic persisted until the end of the summer. According to the latest consumer price data, the annual increase in the cost of dining out is four times that of eating at home.

That will do for your daily briefing. From the New York Stock Exchange, this is Conway Gittens with TheStreet.

Related: McDonald’s Menu Adding a Bigger and Better Take on the Big Mac