Why did McDonald's underperform despite offering cheap deals like its under-$3 menu and $4 breakfast meal?

McDonald's struggled because, according to CEO Chris Kempczinski, loyal customers accounted for about two-thirds of the traffic shortfall, and the issue was attributed to execution—not strategy—indicating that discounts alone were insufficient without complementary improvements in menu innovation, quality, or customer experience.

What does the article identify as the key factor that made value promotions successful for chains like Taco Bell and Burger King, unlike those at Wendy's and Wingstop?

The article states that successful value promotions were 'really clear and simple' and avoided feeling like a 'bait-and-switch'; they were paired with menu innovation, quality improvements, and smoother operations—e.g., Taco Bell’s tiered $5/$7/$9 meal boxes and Burger King’s creative, limited-time '2 for $5' and '3 for $7' offers—whereas Wendy's and Wingstop relied on promotions that failed to offset financial pressure on lower-income consumers or cut through promotional noise.

For McDonald's and Rivals, Cheap Deals No Longer Do the Trick

Aug 11, 2026

U.S. fast-food chains discovered discounts alone fail to drive traffic amid inflation. Winners like Taco Bell and Burger King succeeded by pairing value offers with menu innovation and quality improvements.

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For McDonald's and Rivals, Cheap Deals No Longer Do the Trick

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