McDonald’s Looks to Fix a Value Misfire

McDonald's appeared to miss the mark on its U.S. value proposition.

The fast-food giant's domestic same-store sales rose just 0.8 percent in Q2, missing internal expectations after a solid start to 2026. Comps were slightly negative in April as McDonald's lapped its successful Minecraft promotion, and U.S. comps slipped into negative territory again in July.

The company blamed the slowdown on a series of self-inflicted mistakes. Its new everyday affordability platform did not produce the anticipated traffic, restaurants struggled under a crowded deployment calendar, and marketing failed to break through. Those problems collided during a quarter in which McDonald's pulled back offers valued by some of its most frequent guests.

"We don't have a strategy problem. We simply didn't execute at the level we needed to in the second quarter," CEO Chris Kempczinski said during the company's Q2 earnings call.

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McDonald's launched an Every Day Affordable Price menu in late April featuring 10 items priced under $3, along with a $4 breakfast meal deal. The initiative, known internally as EDAP, was supposed to fill the last major gap in the chain's U.S. value platform.

McDonald's had already adjusted base-menu pricing, introduced its $5 Meal Deal and restored Extra Value Meals. Kempczinski said the chain's core beef, chicken, and beverage prices are now below or near its primary competitors, and internal value and affordability scores have improved by seven to eight points.

EDAP did not build on those gains as expected. Only 60 to 65 percent of U.S. restaurants followed the recommended pricing structure. The flexibility of a menu promising items for less than $3 gave operators room to select different price points, unlike the fixed $5 Meal Deal.

The restaurants following McDonald's pricing recommendations significantly outperformed locations that did not. Pricing compliance is now part of franchisee business reviews, which can influence eligibility for expansion.

The pricing gap was only one issue. Customer awareness of EDAP finished below McDonald's target because the company cycled through several competing messages. The chain also reduced digital offers and eliminated Buy One, Add One for $1 as it invested behind McValue. That decision reduced visits from loyal customers and added effective price during the quarter.

The underperforming EDAP rollout, reduction in digital offers and elimination of Buy One, Add One accounted for two-thirds of the chain's traffic shortfall. The other one-third came mostly from its FIFA campaign in June. The promotion lifted sales and drew enthusiasm from the system, but its results fell short of the company's forecast.

The marketing problem fed an operational one. Restaurant teams moved from KPop Demon Hunters to the EDAP rollout, followed by a new beverage platform and FIFA. Each deployment required training, merchandising, and new customer communication. The loss of familiar digital deals also forced employees to explain the changes at counters and drive-thru speakers.

Service times rose under that workload, and customer satisfaction declined. The competing messages gave each promotion only a short window to gain awareness.

"And if it looks great on paper, but you can't execute it, it doesn't matter," Kempczinski said.

McDonald's is reducing the burden by removing several activities that customers do not see from the remaining 2026 calendar. The company expects operational metrics to respond first.

Value will take more coordination. Franchisees met with company officials in July and are scheduled to meet again in early September. Kempczinski said operators agree that EDAP and the reduction in loyalty offers created a problem, but systemwide changes require discussion instead of an immediate switch.

McDonald's will begin running more national digital flash offers and send personalized deals to frequent loyalty members. Marketing funds are also moving toward Extra Value Meals and other established platforms. The company expects to make further marketing adjustments in Q4 and restore its desired program by 2027.

"We will not get beaten on value," CFO Ian Borden said.

The company is pairing the immediate U.S. repair effort with a new worldwide growth strategy called McDonald's > NEXT.

Accelerating the Arches, introduced nearly six years ago, added roughly $40 billion in systemwide sales and more than $3 billion in operating income. It placed marketing, core menu categories and digital, delivery, drive-thru and development capabilities at the front of McDonald's growth plan.

The work gave McDonald's nearly 220 million active loyalty users and a delivery business producing more than $20 billion in annual systemwide sales. Major markets are also moving toward a common app, loyalty program, pricing engine, human-resources platform, and finance system. The company plans to pool its information in a global data lake that can support AI.

McDonald's > NEXT will focus on food taste and quality, fan participation, simpler restaurants, and hospitality. The strategy also seeks productivity gains in company and franchisee profit-and-loss statements to help pay for system investments.

More than 90 percent of owner-operators surveyed after McDonald's introduced the plan at its worldwide convention said they understood how it could drive growth. The company will disclose financial details and investment requirements at its September Investor Day.

The strategy is not solely a restaurant-remodel program, although physical upgrades will play a role. The U.S. system is nearing another regular 10-year remodeling cycle, giving McDonald's a chance to add sales and operating improvements to work franchisees would already undertake. Company officials believe productivity savings and top-line growth can fund a meaningful share of the plan.

The chain has started activating parts of the strategy. Its specialty beverage platform launched in May across the U.S., Canada, and Germany, followed by Australia in July. Early sales met or exceeded expectations in each market. More than half of beverage traffic has come after lunch, when restaurants have available capacity, and food attachment has lifted average checks. Red Bull Energizers are scheduled to join the U.S. lineup.

McDonald's is also changing how it markets the brand. Kempczinski said the traditional model of developing an annual campaign and pushing it primarily through television no longer fits the way customers interact with companies. McDonald's plans to work more with creators and fans, giving customers a greater role in carrying its message.

The company will retain entertainment tie-ins and cultural promotions, but it wants fewer instances of relying on outside properties such as Minecraft, FIFA, or the Grinch to create short sales spikes. Its goal is to dedicate more communication to the food and restaurant experience that can build recurring traffic.

"I mean there's certainly a role for those, but you're not going to promo your way to long-term value creation," Kempczinski said.

People are another part of the plan. On October 5, McDonald's will begin retraining more than 2 million restaurant crew members, corporate employees and supplier partners in what it calls gold-standard taste, quality, and hospitality. The date is founder Ray Kroc's birthday and will mark the largest training program in company history.

Skye Anderson will oversee much of the U.S. turnaround as the market's new president. Anderson, a 26-year McDonald's veteran, most recently served as U.S. chief operating officer. She previously ran the West Zone, where she supported more than 5,700 restaurants, helped increase comparable sales by more than 30 percent over four years and lifted average restaurant cash flow by $100,000.

McDonald's global same-store sales rose 1.3 percent in Q2, and systemwide sales increased 4 percent. Comps grew 1.5 percent in International Operated Markets and 1.9 percent in International Developmental Licensed Markets.

Germany, Australia and the U.K. helped carry the international segment through value offers, chicken innovation and locally relevant marketing. Japan posted its 10th consecutive quarter of positive comparable guest-count growth. France and China were softer spots.

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