McDonald’s is rolling out its cheapest value menu in years, a move that could speak more to the state of the American economy than it does fast food.
To address this issue, CEO Chris Kempczinski said during the company’s latest earnings call the restaurant chain would double down on its commitment to value and deeper discounts.
McDonald’s did not immediately respond to Fortune’s request for comment.
“Lower-priced options, when chosen carefully, priced at an acceptable level, and marketed aggressively, create perceived value and can generate a long-term customer,” he said.
While Kempczinski last month touted the company’s affordability moves as part of the company getting back to its roots, some worry the new $3 menu could be indicative of broader economic problems to come.
McDonald’s is betting a $3 meal will bring lower-income customers back, and yet, that may be difficult when Americans are increasingly betting that the future could hold more economic pain.
This pressure, Wasilefsky argues, has made value perception that much more important for chains seeking lower-income consumers, or at least those with the financial flexibility to slash prices without gutting margins.
“For those brands who can afford to do so, this is an excellent time to convince existing customers and new customers of your brand’s value and its right to have a share of your shrinking wallet,” he said.
