McDonald’s (MCD) has officially caused a stir with its latest move to lure customers back amid an alarming consumer trend.
Earlier this month, McDonald’s revealed that its sales dropped by 3.6% year-over-year during the first quarter of this year. This contributed to the fast-food chain’s 3% year-over-year decline in operating income, which is its profit after paying operating expenses.
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During an earnings call on May 1, McDonald’s CEO Chris Kempczinski flagged that consumers are cutting their spending on fast food more than expected.
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“We entered 2025 knowing that it would be a challenging time for the QSR industry due to macroeconomic uncertainty and pressures weighing on the consumer,” said Kempczinski. “During the first quarter, geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected.”
McDonald’s is bringing back a popular item for a limited time.
Image source: Sharrett/Bloomberg via Getty Images
McDonald’s makes unexpected announcement
While McDonald’s said during the call that it will continue to focus on providing customers with “value and affordability” in order to win them back, it has also recently decided to bring back a popular menu item to help boost sales.
McDonald’s has announced the return of Happy Meals with Squishmallow toys, which are currently available nationwide for a limited time.
Squishmallows became popular in 2020 during the Covid pandemic. Social media app TikTok appears to have had a large impact on the popularity of the kids’ toy (which is also popular among adults) as it went viral on the platform. At the time, Squishmallows managed to sell out quickly in stores such as Walgreens and Walmart across the country.
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The last time McDonald’s had Squishmallow Happy Meals was in 2023. McDonald’s said that customers who order the Happy Meal will now have a chance to obtain a “never-before-seen” Squishmallow character.
“Inside each Happy Meal box, you will find your classic McDonald’s order of choice, along with one of 12 adorable Squishmallows, including a never-before-seen Intergalactic Axolotl named Halley,” said McDonald’s in a press release. “Each Squishmallows comes with a character hang tag, telling you the name and a little about each Squish, plus a code to scan and immerse yourself in an interactive game.”
The popular Squishmallow Happy Meal will remain on menus until June 9, according to a recent report from Today.
The new Happy Meal is already gaining steam, as the complete set of Squishmallows from the meal is already selling on eBay for prices between $50 and $85.
McDonald’s customers are also already flooding TikTok with posts reviewing the Squishmallow Happy Meal.
McDonald’s recently announced significant menu changes
This is not the first time in recent months that McDonald’s has opted to resurrect a fan-favorite menu item to boost demand at its restaurants.
In December last year, McDonald’s USA President Joe Erlinger announced in an interview on “Good Morning America” that the fast-food chain will be putting its Snack Wrap back on its menus sometime this year after discontinuing it in 2016.
The Snack Wrap consists of chicken tenders, lettuce, shredded cheddar cheese, and ranch wrapped in a soft flour tortilla.
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“Snack Wrap will be back in 2025,” said Erlinger. “It has a cult following, I get so many emails into my inbox about this product.”
Last month, McDonald’s also announced the permanent return of chicken strips at its restaurants nationwide. It officially added McCrispy Strips to its menus on May 5, which is a revamped version of its discontinued Chicken Selects.
McDonald’s bold menu changes come after foot traffic at its restaurants recently declined. According to recent data from Placer.ai, foot traffic in McDonald’s stores fell by 2.6% during the first few months of this year.
This doesn’t come as a surprise as the fast-food chain faced sharp criticism from consumers last year for hiking its menu prices. Also, in October, McDonald’s temporarily suffered an unsettling E. coli outbreak at multiple store locations, which further scared away customers.
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