McDonald's $5 value meal is staying on menus for a little while longer

NEW YORK -- Nearly all McDonald's US locations will continue to sell the "$5 Meal Deal" after people flocked to the promotion amid rising food prices.

Since its launch in June, the limited-time offering is "resonating with our millions of customers," and the company claimed the move was siphoning off business from its competition, according to an internal McDonald's memo obtained by CNN. As a result, 93% of US locations will keep the deal on menus through August.

McDonald's launched the "$5 Meal Deal" in late June intended to be for one month only. The meal includes a McDouble cheeseburger or a McChicken sandwich, small french fries, four-piece Chicken McNuggets and a small soft drink.

McDonald's repeatedly talked about its propensity to raise menu prices without feeling the pain from customers pulling back until the first quarter of this year, when it reported weaker-than-expected sales. But the jump in food prices was not confined to just McDonald's, with other chains also feeling a pinch. Diners are not going out to eat as often and spending less when they do, causing fast food sales to slow and restaurant traffic to dip.

The $5 deal is "meeting the objective of driving guests back to our restaurants" and is even prompting some people to buy full-priced items, resulting in a greater lift of sales, the memo said.

McDonald's (MCD), which will release earnings on July 29, said in the memo that it would consider "further extending" the $5 deal beyond August.

Specific financial data wasn't revealed in the memo. Pacer.ai, a third-party analytics firm, said in a recent report that the deal boosted traffic to restaurants that proved "how well-received this special has been among McDonald's fans."

Starbucks, Wendy's, Taco Bell and Burger King have also added meal deals in recent weeks to boost their bottom lines.

The-CNN-Wire & 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.