Red Lobster is going bankrupt as McDonald’s is set to offer a $5 value meal in the U.S., but only for a limited time.
The promotion will include four items for $5 — a McChicken or McDouble, four-piece chicken nuggets, fries and a drink — and will run for roughly a month, beginning on June 25, according to a person familiar with the offering who was not authorized to speak about it publicly.
“We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising. That’s been true since our very beginning and never more important than it is today,” McDonald’s said in a statement to CNBC.
CNBC last week reported the fast-food giant was working to bring a value offering to menus, with details being discussed and voted on by franchisees. An initial proposal for the meal did not clear necessary hurdles.
Coca-Cola added marketing funds to the equation to make the deal more appealing, CNBC reported Friday. In a statement on Wednesday, Coca-Cola said: “We routinely partner with our customers on marketing programs to meet consumer needs. This helps us grow our businesses together.”
Financial terms of that partnership were not disclosed.
The monthlong promotion comes at a time when restaurants are finally beginning to feel a long-anticipated consumer pullback.
McDonald’s recently reported a mixed first quarter, with U.S. same-store sales slightly missing expectations. Higher prices helped grow average checks, but some consumers pulled back as a result of the steeper costs.
“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the company’s earnings call on April 30.
He added McDonald’s has to be “laser-focused” on affordability to attract diners.
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“Great value and affordability have always been a hallmark of McDonald’s brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it. This is the power and promise of the Golden Arches,” John Palmaccio, McDonald’s owner and operator and chair of the Operators National Advertising Fund, said in a statement to CNBC on the $5 promotion.