McDonald's menu adds new value combo
The chain has been trying to regain its reputation for good value which Wendy's and Burger King have gone after.
Value and price are not the same thing.
You could, for example, buy five broken-down cars for $1,000 each, and that's not automatically as good a value as one reliable automobile for $5000.
In the fast-food world, value becomes even trickier. Subway might sell a foot-long sub for $5, but given the quality of that product you might be much better off buying a $10 sandwich at a local eatery.
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A major part of value is perception. If people feel as if they are getting a good deal, then they are getting a good deal.
It’s much like how many Americans see inflation. People who are having a hard time generally believe that prices have increased much more than they have. That makes sense because if you are struggling, every small increase hits harder.
McDonald’s (MCD) has struggled in the value game for many years. The chain's prices are relatively low, but it fell behind rivals like Wendy’s, which heavily marketed its Four for $4 and $5 Biggie Bag deals.
Perception has been a major issue for the chain, and Chief Executive Chris Kempczinski has pledged to fix it.
