McDonald's Removes Low-Cost Menu After Traffic Slump
Quick-service operators should note how McDonald's is shifting its marketing budget away from deep discounts to restore margins.
Updated on Oct. 24, 2026 in Business Strategy
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Do you feel that current fast-food meal prices represent good value for your household budget?
McDonald's has officially discontinued its under $3 Every Day Affordable Price (EDAP) menu following poor traffic performance in the second quarter. The chain is now pivoting its marketing focus toward higher-priced Extra Value Meals and personalized digital offers for the second half of the year.
Why it matters
The company determined that its previous deep discount strategy failed to drive incremental traffic while simultaneously pressuring profit margins. Operators should note that value-based promotions that do not effectively convert to higher-margin sales can negatively impact long-term traffic sustainability.
McDonald's attributed 2/3 of its second-quarter customer traffic decline to unsuccessful value execution. The shift involves removing $1 Buy One, Add One features and retiring the under $3 EDAP menu, while maintaining the $4 Breakfast Meal Deal.
The players
McDonald's
A global quick-service restaurant chain that operates through a franchise-heavy business model and focuses on scale and efficient menu management.
The details
The decision follows a period where the company's reliance on deep discounting failed to generate the intended incremental traffic volume. By removing the under $3 menu and the Buy One, Add One for $1 feature, the chain is reallocating marketing resources to promote higher-priced Extra Value Meals. The strategy now centers on leveraging personalized digital offers to reengage high-frequency customers instead of broad, low-margin price points.
Timeline
Late April: McDonald's introduced the under $3 EDAP menu.
Second quarter: The chain experienced lower-than-expected customer traffic.
Second half of the year: The company will reallocate marketing funds toward Extra Value Meals.
Market Landscape
McDonald's strategic pivot highlights the recurring industry challenge of balancing volume-driving promotions with unit-level profitability. This move follows a period of heavy reliance on broad discounting, marking a departure from the sector's recent efforts to boost traffic through low-cost value menus.
Owners should evaluate whether current discount offerings are eroding margins without providing a proportional lift in transaction volume. Relying on personalized digital loyalty programs rather than broad price slashes may offer a more sustainable path to managing high-frequency customer engagement.
The takeaway
When high-frequency customers become conditioned to deep-discount pricing, weaning them off can cause temporary traffic volatility. Operators should track the conversion rate of digital promotional offers against traditional menu-board pricing to determine the optimal balance for their specific customer base.
Further reading
For more on shifts in consumer-facing pricing models, see Business Strategy.
Live Poll
Do you feel that current fast-food meal prices represent good value for your household budget?
