Uncategorized

McDonald’s Is Bringing Back Cheap Breakfast Deals After Recording Its Biggest Drop in Lower-Income Diners

Products are selected by our editors, we may earn commission from links on this page.

Source: Shutterstock

McDonald’s is doubling down on affordability, and this time, breakfast is front and center. Starting in April, the chain plans to launch new deals aimed at budget-conscious customers, including a $4 breakfast meal and a menu of items priced at $3 or less. The moves come as McDonald’s works to reclaim lower-income diners who have been pulling back on fast food spending.

Breakfast Took the Biggest Hit From Budget-Conscious Customers

Source: Shutterstock

Of all the meal categories McDonald’s offers, morning items saw the steepest drop among lower-income diners, according to an internal company message viewed by the Wall Street Journal. Other chains reported the same trend. Wendy’s CEO Ken Cook told investors that when consumers feel financial pressure, “breakfast is often the first place that they do that with.”

Here’s What the New Deals Actually Look Like

Source: Shutterstock

The $4 breakfast meal will bundle a McMuffin, hash brown, and coffee. The $3-and-less menu will offer items like a sausage biscuit or a 4-piece chicken McNuggets. That lower-priced menu replaces the buy-one-add-one-for-a-dollar promotion introduced in 2025, giving customers more flexibility to order cheaper items on their own.

McDonald’s Prices Climbed 40% in Five Years

Source: Shutterstock

Between 2019 and 2024, the average cost of a McDonald’s menu item rose 40%, a jump McDonald’s attributed to higher wages, increased operating costs, and pricier ingredients. Franchisees, who set their own prices, raised them sharply as inflation surged after 2020. That pricing shift gradually eroded the brand’s reputation as a go-to option for affordable meals.

Lower-Income Visits Dropped “Nearly Double Digits” Industry-Wide

Source: Shutterstock

The pullback wasn’t just a McDonald’s problem. CEO Chris Kempczinski told investors that traffic from lower-income diners fell “nearly double digits” across the fast-food industry, driven by rising grocery and apparel prices weighing on household budgets. Chipotle reported a similar trend, with customers earning under $100,000 — about 40% of its sales base — dining out less frequently.

The Chain Has Been Testing Value Plays Since 2024

Source: Shutterstock

McDonald’s didn’t arrive at these April deals overnight. The chain launched $5 meal deals in 2024, added $1 items with full-price purchases in January 2025, and later reached an agreement with U.S. franchisees on lower combo meal prices last fall. McDonald’s and its franchisees spent roughly $85 million advertising those cheaper combo meals last year, per the Wall Street Journal.

Franchisees Are On Board, But the Support Won’t Last Forever

Source: Shutterstock

The updated strategy, internally called “McValue 2.0,” was approved with what McDonald’s described as “unanimous alignment” from franchisee groups, according to a message sent to operators and viewed by the Wall Street Journal. The company provided around $35 million to restaurant operators who absorbed losses from discounted combo meals in early 2026, but that financial support is set to end in March.

Affordability Scores Are Up, But Not Back to Pre-Pandemic Levels

Source: Shutterstock

More customers are giving McDonald’s credit for its prices. Market research firm Technomic found that 21% of consumers surveyed called the chain affordable in 2025, up from 18% in 2024. However, that figure still falls short of 2019 levels. Thirty-six percent said McDonald’s prices compared favorably to those of other fast-food chains. The chain’s affordability rating has not yet returned to its 2019 standing, Technomic noted.

Competitors Are Making Their Own Affordability Plays

Source: Shutterstock

McDonald’s isn’t the only chain recalibrating for value-driven customers. Panera Bread, which historically hasn’t run a value menu, announced a $4.99 mix-and-match promotion last month. Domino’s said a $9.99 pizza of any style with any topping has been pulling customers away from competitors. At Applebee’s, deals now account for roughly one-third of all orders, with parent company Dine Brands CEO John Peyton calling it “the new normal.”

Despite the Challenges, McDonald’s Finished 2025 Strong

Source: Shutterstock

Even as lower-income traffic declined, McDonald’s posted $140 billion in systemwide sales in 2025, with a 5.5% jump in fourth-quarter sales growth. U.S. same-store sales rose 6.8% in its most recent quarter, generating $7 billion in revenue, the company reported. The April deals will be the chain’s most direct attempt yet to convert that momentum into a lasting relationship with its most price-sensitive customers.

Shane Rowe

Recent Posts

Thousands Walk Out at Major US Meatpacking Plant as Labor Dispute Escalates

Source: Pexels Thousands of workers walked off the job at a major beef processing plant…

9 hours ago

New Proposal Could Cut Gas Prices for Millions of Drivers

Source: Pexels A new proposal in the United States could offer much-needed relief to millions…

12 hours ago

Health Experts Warn of Emerging Ebola-Like Virus Threat Already Reaching the US

Source: Shutterstock When Americans think about dangerous viruses, the names that usually come to mind…

14 hours ago

Wildfires Are Erupting Early Across the US, and Experts Warn It’s a Troubling Sign

Source: Pexels It was still technically winter when Nebraska recorded the largest wildfire in its…

15 hours ago

TSA Warns High Call-Out Rates Could Force Airport Shutdowns

Source: Shutterstock Air travel across the United States is facing growing disruption as officials warn…

17 hours ago

Volcanic Ash Blankets Italian Farms Yet Growers Discover an Unexpected Benefit

Source: Pexels Communities surrounding Mount Etna frequently experience heavy ashfall after eruptions. In some cases,…

18 hours ago