Starting June 25, McDonald's will introduce a $5 meal deal at select locations across the US for a limited time, aiming to attract budget-conscious consumers amid rising inflation, the company announced.

According to Reuters, the meal deal includes a McDouble or McChicken sandwich, small fries, four-piece Chicken McNuggets, and a small soft drink. However, the McDouble meal may be priced at $6 in certain areas, such as Alaska, California, Guam, Hawaii, Nevada, Manhattan, and Washington.

At the same time, McDonald's is also bringing back its app-exclusive "Free Fries Friday," offering a free medium fry with any $1 minimum purchase through the end of 2024.

Competitors like Burger King, owned by Restaurant Brands International, are also exploring similar value deals. Burger King is considering a $5 "Your Way deal" to entice customers who are feeling the pinch of inflation and are choosing to eat at home more frequently.

READ MORE: McDonald's and Other Corporations Warn That US Inflation Is Already Felt as Customers Spend Less

Fast Food Industry During Inflation

While McDonald's has reported sluggish performance due to cautious spending, per VCPost, Domino's Pizza has experienced a boost in sales thanks to similar promotional strategies involving budget-friendly meals.

As disposable income among lower-income groups declines and menu prices rise to offset higher commodity and supply chain costs, fast-food chains are increasingly focusing on value deals to maintain customer traffic.

The fast food industry also worsens as major retailers like Target, Walmart, and Kroger have encouraged the trend towards eating at home. These retailers have kept prices on everyday essentials low, further challenging fast-food chains to offer attractive deals to lure customers back to their restaurants.

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