McDonald's Launches $3.50 Test Bundles Amid US Traffic Drop

McDonald's is testing a new line of low-cost meal bundles at 1,900 U.S. restaurants after the chain reported a decline in customer traffic for the third quarter. The eight-week pilot program began recently and includes mix-and-match options as well as fixed-price packages. One example cited by the company is a McChicken sandwich paired with small fries for $3.50.

CEO Chris Kempczinski announced the initiative during a conference call with investors on Wednesday. He stated that the goal is to provide a clear value proposition for customers seeking affordable individual items or complete meals. Kempczinski noted that the company is shifting marketing spending toward value meals to support this strategy.

U.S. same-store sales for the July through September period fell by 0.2%. This marked the first drop in sales for the company since early 2025. Although the decline was smaller than the 0.5% drop predicted by Wall Street analysts, it signaled a slowdown in the domestic market. Same-store sales returned to positive territory in September and October following the restoration of regional and national in-app deals.

The challenge is part of a wider trend in the industry. Revenue Management Solutions reported that foot traffic across the entire U.S. fast food sector fell by 2.6% in the third quarter. Many Americans are facing higher gas prices and a high cost of living, which has made them more price-sensitive. McDonald's has been adjusting its value offerings for more than two years to compete with rivals like Taco Bell, which offers a menu of 10 items costing $3 or less.

The company introduced a $5 Meal Deal in June 2024 and later debuted its McValue menu. In April, McDonald's revamped that menu to add 10 items priced at $3 or less. However, not all franchisees adopted the changes. Kempczinski said in August that only 60% of U.S. restaurants were offering the revamped McValue menu. Around 4,000 franchisees have since launched their own meal bundles without waiting for the current test results.

Financial results for the quarter showed mixed signals. Global same-store sales rose by 1.3%, with strong performance in Germany and Australia offsetting weakness in France. Total revenue increased by 1% to $7.16 billion, which fell short of the $7.28 billion expected by analysts. Net income rose by 9% to $2.49 billion. The company reported adjusted earnings of $3.57 per share, beating the forecast of $3.38.

McDonald's shares rose by more than 5% in morning trading on Wednesday. The stock movement followed the release of the quarterly earnings report. The company continues to refine its strategy to appeal to lower-income consumers who have been seeking better entry-level deals.