McDonald’s (MCD) is laser-focused on winning back frugal customers after it recently faced a dip in its sales.
The fast-food chain’s fourth-quarter earnings report for 2024 revealed that while its global comparable sales increased by 0.4% year over year during the quarter, its U.S. comparable sales shrunk by 1.4%.
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In the report, McDonald’s said that despite facing “slightly positive” foot traffic inside its U.S. restaurants, the shrinkage in comparable sales reflects a decline in the amount of money customers choose to spend inside its stores.
Related: McDonald’s flags an alarming shift in customer behavior
During an earnings call on Feb. 10, McDonald’s CEO Chris Kempczinski said that the number of low-income consumers visiting the fast-food chain’s U.S. restaurants was “still down double digits” during the fourth quarter.
The startling change in consumer behavior comes after McDonald’s faced backlash from consumers last year for hiking its menu prices. In October, the restaurant chain also suffered an unsettling E. coli outbreak at multiple locations, which forced it to temporarily remove its Quarter Pounder from menus.
Since then, McDonald’s has rolled out deals such as its $5 Meal Deal and its brand-new “Buy One, Add One for $1” deal to try to boost sales.
McDonald’s makes a bold announcement
In its latest attempt to win back customers, McDonald’s is now promising not to add a surcharge on eggs, unlike its competitors. This comes amid an alarming bird flu crisis in the U.S. that is causing egg shortages and price hikes nationwide.
A customer views a digital menu at the drive-thru outside a McDonald’s Corp. restaurant in Peru, Illinois, U.S., on Wednesday, March 27, 2019.
“Unlike others making news recently, you definitely WON’T see McDonald’s USA issuing surcharges on eggs, which are 100% cage-free and sourced in the U.S.,” wrote Michael Gonda, chief impact officer at McDonald’s North America, in a recent LinkedIn post.
In addition to announcing no egg surcharges, he also revealed that McDonald’s will offer Egg McMuffins for $1 on its app, starting Feb. 27.
“When it was introduced nationally in 1975, the Egg McMuffin changed breakfast forever, and that freshly cracked egg remains key to fans’ love for it,” wrote Gonda.
Bird Flu is having a major domino effect
Bird flu, also known as avian influenza, is a viral illness that can cause respiratory distress, decreased energy and appetite, low egg production, misshapen eggs, and even sudden death in infected birds.
According to recent data from the U.S. Department of Agriculture, the disease has infected 87 commercial flocks, 51 backyard flocks, and over 19 million birds in the past 30 days across the U.S. Bird flu also killed 20 million egg-laying chickens nationwide last quarter.
Related: Popular restaurant chain adds egg surcharge, breakfast fans aren’t happy
A few of McDonald’s competitors, such as Waffle House and Denny’s, have opted to issue a small temporary surcharge on meals that contain eggs as they face higher egg prices.
Many grocery store chains, such as Sprouts, Aldi, and Costco, have also limited the number of egg cartons their customers can purchase per visit, as the bird flu crisis is causing egg shortages.
Many consumers have even taken to social media to flag skyrocketing egg prices in stores.
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