McDonald's tests $3.50 bundles after U.S. sales dip

McDonald’s plans to roll out new low-cost meal bundles to U.S. customers in early 2027. The move follows a drop in restaurant traffic during the July to September period.

The company began an eight-week test of these bundles in 1,900 U.S. locations recently. The deals include fixed-price and mix-and-match options. One example cited by leadership is a McChicken sandwich and small fries for $3.50.

About 4,000 franchisees have already introduced their own bundles without waiting for the official test results. Chris Kempczinski, the company’s chairman and CEO, said this shift aims to provide a clear value proposition for shoppers.

U.S. same-store sales fell 0.2% in the third quarter. This was the first decline for the chain since early 2025. Analysts had predicted a larger 0.5% drop. Sales returned to positive growth in September and October after the company adjusted its marketing and in-app deals.

The chain has been adjusting its value menu for over two years to compete with rivals like Taco Bell. In June 2024, it launched a $5 Meal Deal. It later added an McValue menu and Extra Value Meals, which offer a 15% discount on bundled items. In April, the chain added 10 items priced at $3 or less to that menu.

Not all franchisees adopted the new value offerings immediately. Only 60% of U.S. restaurants offered the revamped McValue menu as of August. Franchisees own 95% of the company’s U.S. locations. Kempczinski noted that previous efforts lacked compelling entry-level deals for low-income consumers.

Globally, same-store sales rose 1.3% in the third quarter. Strong performance in Germany and Australia offset weakness in France, where protests began in September. Total revenue increased 1% to $7.16 billion, slightly below Wall Street forecasts. Net income rose 9% to $2.49 billion, with adjusted earnings of $3.57 per share. Shares climbed more than 5% in morning trading on Wednesday.