McDonald's Tests Two Value Menus Ahead of a National 2027 Rollout

McDonald's is testing two value menu formats in about 1,900 U.S. restaurants before choosing one for a national rollout in early 2027. According to a recent CNBC article, the decision will depend on customer response and whether franchisees see enough benefit to support the offer.

The global fast food giant reported a 0.2% decline in U.S. same-store sales for the third quarter, compared with the 0.5% drop expected by analysts surveyed by StreetAccount. Chief Financial Officer Ian Borden said domestic same-store sales returned to growth in September after falling in July and August. He later clarified that the September improvement was not a forecast for a stronger fourth quarter.

The eight-week test compares two approaches. One lets customers choose from a mix-and-match list to build their own bundle; the other offers preset combinations at a fixed price. President and CEO Chris Kempczinski said on the earnings call that McDonald's is measuring traffic and sales alongside the impact on franchisees.

The bundles are also available outside the test markets. Kempczinski said franchisees operating roughly 4,000 additional restaurants have introduced similar entry-level offers on their own. Including the test locations, more than 40% of McDonald's U.S. restaurants now have some version of the promotion.

Franchisee participation has been a sticking point for McDonald's value strategy. The chain introduced a menu of items priced under $3 in April, but executives acknowledged over the summer that execution varied across restaurants. Independent owners operate about 95% of McDonald's restaurants worldwide, according to the company's third-quarter filing. Their participation will be central to whether the next promotion reaches the full system.

McDonald's has also leaned on Extra Value Meals and app promotions, including regional and national offers aimed at frequent customers. The strategy comes as the chain competes for budget-conscious diners with rivals such as Burger King. Worldwide systemwide sales increased 4% to more than $38 billion in the quarter.

McDonald's has not settled on a national value menu yet. The next several months will show which format generates customer traffic without putting franchisees in a position where the economics don't work. The company has already seen that getting a promotion onto the menu is one thing. Getting operators across the system behind it is another.

Read the full article here.

Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.