McDonald’s may generate a modest profit from its $5 meal deal, estimated to be between 1% and 5%, translating to roughly $0.05 to $0.25 per combo sold, as noted by restaurant analyst Mark Kalinowski. This promotional strategy aims to attract inflation-burdened consumers back to the restaurant, encouraging them to make additional purchases beyond the $5 deal.
However, the potential profit hinges on several variables, including rising ingredient costs, labor expenses, and overhead. Arlene Spiegel, president of Arlene Spiegel & Associates, emphasized that the meal deal is “more promotional than profitable.”
Although the combo might entice customers back into McDonald’s locations, it does not guarantee that franchisees will reap the financial benefits. Approximately 95% of McDonald’s restaurants are franchisee-operated, meaning the owners set their own prices and bear the burden of expenses such as rent, insurance, and taxes.
In May, Joe Erlinger, president of McDonald’s U.S., indicated that franchisees often use promotional offers like the $5 meal deal to help offset these overhead costs. However, Spiegel described the bundle more as a “loss leader” aimed at drawing in customers. She pointed out that when operational costs—like labor, packaging, condiments, delivery, and marketing—are considered, franchise owners may find their profits significantly diminished or eliminated.