rewrite this title and make it good for SEOMcDonald’s kicks off 2025 with its McValue menu, sparking a fast food value competition

McDonald’s (MCD) is paving the way for more value competition in 2025 with its new McValue platform.

Bernstein analyst Danilo Gargiulo called its first national value offering since 2018 a “continuation” of the trend that investors saw in the second half of 2024.

“Affordability [and] value matters,” Gargiulo said. In the past year, McDonald’s has been challenged by consumers saving money by eating at home, other fast food giants rolling out more value offerings, and fast-casual chains like Chipotle (CMG), Cava (CAVA), and Sweetgreen (SG) gaining market share.

Franchise operators are fairly certain that the McValue platform will lure in customers, offsetting any hit to margins.

“There may be a margin challenge where we are providing food at a great value, but if we can bring more people in, then it will take care of that. That’s our goal,” McDonald’s franchise operator David Costa told Yahoo Finance over the phone.

The McValue platform includes a $5 meal deal that launched last June, which led to a slight boost in foot traffic but was later disrupted by the E. coli outbreak that began in October. It also has a buy one, add one for $1 option. Lastly, there will be local deals and in-app exclusives like 20% off $10 or more.

All US locations will begin offering the McValue platform starting this Tuesday.

Furthermore, McDonald’s is partnering with 16 brands in the first few weeks of 2025 for additional deals, such as one free month of YouTube TV (GOOG) and even a Tinder Gold Premium Access subscription (MTCH). Customers can access them through advertising campaigns on various platforms.

A franchise owner, who asked to stay anonymous but frequently posts on X as McFranchisee, told Yahoo Finance “margins will be compressed, but we do believe with the [increase] of guest counts that it yields overall positive cash flow to the restaurant.”

The franchise owner also shared “how difficult” it was to create a value platform that works across various regions in the US.

Wedbush analyst Nick Setyan doesn’t expect the value platform to be a big profit driver, but getting more customers in the door could result in some diners trading up to more expensive items on the menu.

“As long as [the franchisees are] not losing money, they’ll be happy,” he told Yahoo Finance over the phone.

The menu could be a “big transaction driver,” potentially music to investors’ ears, as even a 2% same-store sales growth would be “good enough” in this competitive value environment, according to Setyan.

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