McDonald's to Overhaul US Value Strategy Amid Slowing Sales Growth, Report Says

McDonald's Corp. is reportedly developing a new value strategy in collaboration with its US franchisees to combat slowing sales, according to a Bloomberg report. The move comes after the fast-food chain recorded its weakest domestic sales growth in more than a year, prompting a re-evaluation of its approach to price-sensitive consumers.

A New Approach to Value

In a message to operators, the company said it will formulate a longer-term strategy for value offerings in the coming weeks, the report stated. In the interim, McDonald's is preparing a short-term plan that will include temporary items and digital offers built around popular existing products.

This strategic shift is the first significant initiative under the new head of its US business, Skye Anderson, who was appointed last month. The changes are being developed ahead of the company's investor day, scheduled for next week, and will also involve updates to franchisee training and support.

Context of Slowing Growth

The urgency for a new strategy follows a period of underperformance. In the most recent quarter, sales at established US restaurants grew just 0.8%, the weakest result since early 2025. The company's stock has also faced pressure, declining roughly 17% year-to-date.

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McDonald's has a history of adjusting its value propositions to market conditions. Previous efforts that proved challenging included:

• CEO Chris Kempczinski noted on a recent earnings call that many franchisees did not adhere to corporate pricing recommendations, which negatively impacted results.
• The company had previously expanded its value menu with items under $3 but also reduced app-only offers.
• A popular "buy one, get one for $1" promotion was also discontinued.

Market Reaction

Following the news, shares of McDonald's (NYSE: MCD) saw a brief increase before paring gains to trade approximately 0.2% higher. The muted response suggests investors may be waiting for more concrete details on the new strategy and its potential to reignite sales growth.