McDonald's Tries Cheaper Menus to Revive Sales

McDonald's is counting on price cuts and limited-time promotions to attract budget-conscious customers in its US business, which has posted its softest growth in over a year. The company and its franchisees have agreed on a longer-term pricing framework aimed at luring value-seeking customers back into restaurants.

The strategy comes with built-in tension: discounts tend to squeeze the operating margins of franchise operators, forcing management to balance market-share gains against store network profitability.

McDonald's is also rolling out attention-grabbing stunts. It launched a limited-run Happy Meal toy tie-in at US locations on Tuesday featuring SpongeBob and One Piece brands. Overseas, the chain is betting on international menu items to generate buzz with its 'World Menu Heist 2.0' campaign starting September 22.

Shareholders are benefiting from McDonald's dependable dividend policy, which has seen a 4% increase in the quarterly payout to $1.93 per share. This marks the 50th consecutive year McDonald's has raised its payout, a rare achievement among companies.