McDonald's confirms change to its $5 meal deal

McDonald's $5 value meal will be extended through the rest of the summer at most of its restaurants. 

More than nine in ten locations have vowed to keep offering the four-item bundle longer than the initial period, due to end tomorrow. 

McDonald's $5 deal - including either a McChicken or McDouble, four-piece chicken nuggets, fries and a drink - was rolled out to offer 'meaningful value' to customers.

Last week, DailyMail.com reported McDonald's was working with franchisees to extend the deal - but the company played down the plans.

Now, an internal McDonald's memo reveals 93 percent of the chain's 14,000 US restaurants will have the $5 deal through August.

Since it launched, the meal 'is meeting the objective of driving guests back to our restaurants,' according to the memo seen by Bloomberg. 

That assessment differs from the findings of analyst Peter Saleh, whose company BTIG monitor visitor numbers at fast food chains.

'It's just too early to know if this $5 Meal deal will drive profitable incremental traffic,' he said in a note to investors.

Predicting the extension, he said the offer is aimed at changing Americans' perception of McDonald's as being expensive - as much as it is luring in more customers.

The memo - signed by chief marketing officer Tariq Hassan and national field president Myra Doria - adds that the fast food chain is looking to boost its 'affordability plans through the rest of year'. 

This includes the possibility that the $5 deal may even be extended into the fall. 

When news of the meal first emerged in May, it was thought that not every restaurant would offer the deal - with those that have higher labor and rent costs opting out.

But McDonald's found a solution. It is allowing managers in pricier states - Alaska, California, Guam, Hawaii, Nevada, Manhattan in New York and Washington - the option to charge $6.

McDonald's made an eye-watering $14.5 billion profit last year.

Chains are reeling from falling customer numbers as Americans fed up with two years of price rises stay away - so are rolling out offers.

Burger King's $5 Your Way Meal - which is very similar to McDonald's - was the first to hit restaurants in June.  

Customers get a choice of one of three sandwiches - a Whopper Jr, a Bacon Cheeseburger or Chicken Jr - plus four chicken nuggets, fries and a soft drink. 

Wendy's has a $3 breakfast offer and also a four-item $5 meal similar to McDonald's and BK's.  

Starbucks also made a surprise entry into the value war with a coffee and food breakfast combo from $5. 

McDonald's is trying desperately to battle perceptions that it has raised prices so much it is no longer good value.

In fact, last month McDonald's US president Joe Erlinger wrote an unprecedented open letter to customers claiming its price rises aren't as bad as some media is reporting.

In it, he said prices have 'only' gone up 40 percent across restaurants since before the pandemic.