News Analysis
McDonald’s is intensifying the price competition in the fast-food industry by reintroducing the Extra Value meals, which bundle an entrée with fries and drinks.
Value meals typically sell at a discount compared to the total price of the three items when sold separately, appealing to price-sensitive customers.
At the same time, value meals help McDonald’s raise the “ticket” per customer, as some takeaway customers may skip the fries or the drink, and purchase just the entrée.
The reintroduction, which goes into effect on Sept. 8, follows the extension of $5 meals in November 2024 and the introduction of $1 items….