McDonald’s to keep $5 meal deal through the end of 2024

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why McDonald’s fans have reason to celebrate.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:03Here's what we're watching on the street today.

00:05The S&P 500 and the Nasdaq are on winning streets, up four days in a row.

00:10Market gains were modest ahead of an upcoming interest rate decision from the Federal Reserve.

00:14But the rally was strong enough to suggest Wall Street is comfortable

00:18with the idea of an expected quarter point rate cut by the Fed.

00:23The mood of the consumer will be in focus Friday

00:25with the University of Michigan's preliminary August read on consumer sentiment.

00:29And speaking of consumer attitudes, McDonald's customers have spoken

00:34and it seems like the company heard them loud and clear.

00:37The burger chain announced it will be extending its $5 meal deal into December.

00:42McDonald's first introduced the $5 deal in June as a one-month promotion

00:47but quickly extended it into a summer-long offering.

00:50The deal allows customers to choose either a McChicken sandwich or McDouble cheeseburger,

00:55small fries, four-piece Chicken McNuggets, and a small soft drink.

00:59The president of McDonald's USA saying,

01:12The fast food giant had been previously able to raise menu prices

01:16without seeing a big dip in sales, but that changed as inflation remained persistent.

01:22The problem isn't McDonald's alone.

01:24The entire industry, with a few exceptions, was forced to change its tune.

01:28Earlier this year, CEO Chris Kuczynski said it was simply more affordable

01:33for customers to eat at home.

01:35This dynamic has persisted through the end of the summer.

01:38According to the latest consumer price data,

01:41the annual rise in the cost of eating out is four times greater than eating at home.

01:47That'll do it for your daily briefing from the New York Stock Exchange.

01:50I'm Conway Gittens with the Street.

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