The Blubber

McDonald's, $MCD, will roll out its $5 meal deal from June 25 for a limited time at some restaurants across the U.S.

McDonald’s announced on Thursday that it will launch a $5 meal deal starting June 25 for a limited time at select restaurants across the U.S., as the fast-food giant aims to attract lower-income customers with cost-friendly options.

Burger King, owned by Restaurant Brands International, is also considering a $5 “Your Way deal” as fast-food companies offer better deals and promotions to appeal to inflation-hit customers who are increasingly choosing to eat at home.

McDonald’s value deal will include a McDouble or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small soft drink for $5.

In some locations, such as Alaska, California, Guam, Hawaii, Nevada, New York (Manhattan only), and Washington, McDouble meal options may be priced at $6.

McDonald’s has also brought back its app-only “Free Fries Friday” promotion, which allows customers to get a free medium fry with any $1 minimum purchase through the end of 2024.

Selective spending negatively impacted the performance of McDonald’s and Yum Brands, the parent company of KFC, in the most recent quarter. In contrast, promotions helped boost sales at Domino’s Pizza.

Disposable income among lower-income groups in the U.S. is decreasing, while menu prices have risen across the food industry over the past year as companies try to offset higher commodity and supply chain costs.

In late May, McDonald’s USA President Joe Erlinger criticized viral reports of skyrocketing Big Mac prices in an open letter, calling them misleading.

Meanwhile, the shift to eating at home has been accelerated by major retailers like Target, Walmart, and Kroger keeping prices low on everyday essentials.