McDonald’s transformation (MCD)

McDonald's transformation (MCD)

McDonald’s is having a rough time lately. Costs have skyrocketed, forcing them to raise prices by 40-50% (mostly in the U.S., but other regions aren’t much better off). Then came October’s E. coli scandal – nearly 50 people got sick, and one person even died. Add to that the not-so-great income situation of their target audience, and it’s no surprise McDonald’s has taken a hit recently.

One of the anti-crisis measures is the McValue platform, which is planned to be launched in the US in January.

https://preview.redd.it/2nti8q6ihl4e1.jpg?width=1168&format=pjpg&auto=webp&s=a95128139be09145a80681909adc4c0445bd5268

This new platform is their big move to make the menu more accessible. Here’s what’s coming:

1️⃣ $5 Meal Deal – Like a McCombo, but built slightly differently.

2️⃣ Buy One, Add Another for $1 – A new offer featuring classics and some fresh menu items.

3️⃣ “Local Deals” – Exclusive discounts or offers tailored by franchisees or specific states.

4️⃣ App-Only Specials – Designed to drive traffic to their app and onboard customers into their loyalty program.

For most of its history, McDonald’s aimed to be the ultimate low-cost choice: decent quality at a fair price, without sacrificing service or atmosphere. They pulled it off through optimized labor, economies of scale, and smart franchise management.

But lately:

  1. Ingredient, labor, and procurement costs are climbing fast.

  2. They either have to raise prices or cut quality, risking their reputation.

The latter is happening more than they’d like.

I think McDonald’s will seriously overhaul its strategy. McValue isn’t just a one-off campaign – it’s likely the first step in a larger transformation. Definitely worth keeping an eye on. 🍔

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