McDonald's Dives into Value Revamp to Stem US Sales Decline

McDonald's is revamping its value strategy in an effort to revive US sales growth after posting its weakest performance in over a year. According to Bloomberg, the company will introduce a longer-term approach for value-conscious customers within weeks and create temporary items and digital offers based on current popular products.

The move comes as McDonald's shares have declined by around 17% year-to-date, with sales at established US restaurants growing just 0.8% last quarter. This marks the first major change under new US head Skye Anderson, who was appointed to bring focus and urgency to the business.

The company has been experimenting with value offerings in recent months, including $5 meal deals and items priced under $3. However, some franchisees did not follow corporate pricing recommendations, leading to disappointing results. McDonald's CEO Chris Kempczinski previously stated that many franchisees did not adhere to recommended pricing.