McDonald's launches a $5 Meal Deal as inflation-weary consumers ditch fast-food

McDonald's is introducing a $5 Meal Deal to attract customers affected by inflation and the rising cost of living. The deal includes options like a McChicken or McDouble, with fries and a drink. Despite global sales slowing, this initiative aims to enhance affordability amid high fast-food prices, which have significantly increased over the past decade.

However, the rollout faces challenges, particularly from U.S. franchise owners, 95% of whom rejected the deal due to potential earnings losses. This resistance is especially strong in California, where new wage laws have driven up operational costs, leading to higher menu prices across the state. McDonald's stock saw a boost following the announcement, contrasting with declines in competitors like Wendy’s and Burger King.