McDonald's Tests Cheaper Entry-Level Bundles In 1,900 Restaurants, Targets National Launch In Early 2027
The CEO calls entry-level value the last missing piece of the U.S. value plan, as a test runs in about 1,900 restaurants.
McDonald's CEO Chris Kempczinski said on the company's third-quarter earnings call Wednesday that cheaper entry-level bundles are the final missing piece of its U.S. value strategy, and that an eight-week test is now running in about 1,900 restaurants. The goal is a national launch in early 2027.
Two bundle designs on trial
The test began last week across a handful of regions and covers all day parts, Kempczinski said. One version is mix-and-match bundles, which mimic the old buy-one-add-one ordering habit. The other is fixed bundles, a set combination at a set price.
Franchisees representing about an additional 4,000 restaurants have moved ahead with similar bundles without waiting for formal results. Together with the test restaurants, that is more than 40% of the U.S. system, Kempczinski said.
Results will be judged on incrementality, take rates and franchisee economics. Asked about early readings, he called it premature to share anything after one week.
Why extra value meals fall short
Asked by an analyst at BTIG why extra value meals are not enough, Kempczinski laid out three needs: menu board prices, meal bundles and entry-level value. The first two are in good shape, he said, citing the $5 and $6 meal deals. On the third, he said low-income consumers want great entry-level value and "we have not had that in place to the level that we are satisfied with."
He said the company did not land that in the second quarter "like we needed to." CFO Ian Borden said extra value meal unit sales for top items are up about 7% from a year earlier.
A U.S. recovery still being built
U.S. comparable sales fell 0.2% in the third quarter and are up 1.4% for the year to date, Borden said. Sales turned positive in September after slightly negative July and August, following restored digital offers, more marketing behind value and tighter restaurant execution. Globally, comparable sales rose 1.5%, and adjusted earnings per share were $3.57.
Pressed by an analyst at TD Cowen on whether fourth-quarter U.S. comparable sales will improve, Borden said he had not said that. Management is encouraged by September and October baseline trends and wants a stronger exit from 2026, he said.
McDonald's shares rose about 5% to $276.09 in Wednesday trading. Kempczinski said the last 18 months taught the company to move cautiously on pricing, and the app has more than 45 million U.S. loyalty members.
The test's results will decide which bundle structure goes national in early 2027.
Sources
- McDonald's (MCD) Q3 2026 earnings — CNBC
- McDonald's US foot traffic falls as high costs crimps spending for many | AP News — Associated Press
- McDonald's Earnings Beat Estimates, but US Customer Traffic Remains Under Pressure — benzinga.com
- McDonald's (MCD) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates — Yahoo Finance
- McDonald's tops profit expectations despite sluggish sales in the U.S. (MCD:NYSE) — seekingalpha.com
