Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The S&P 500 is on a winning streak – up four days in a row. Market gains were modestl ahead of an upcoming interest rate decision from The Federal Reserve, but the rally was enough to suggest Wall Street is comfortable with the idea of an expected quarter-point cut by the Fed.
The mood of the consumer will be in focus Friday with the University of Michigan’s preliminary August read on consumer sentiment.
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And speaking of consumer attitudes- McDonald’s customers have spoken, and it seems like the company heard them loud and clear. The burger chain announced it will be extending its $5 meal deal into December.
McDonald’s first introduced the $5 deal in June as a one-month promotion, but quickly extended it into a summer-long offering. The deal allows customers to choose either a McChicken sandwich or McDouble cheeseburger, small fries, 4-piece Chicken McNuggets and a small soft drink.
The President of McDonald’s USA saying, “Together with our franchisees, we’re committed to keeping our prices as affordable as possible, which is why we’re doubling down with even more ways to save.”
The fast-food giant had previously been able to raise menu prices without seeing a big dip in sales, but that changed as inflation remained persistent. The problem isn’t McDonald’s alone. The entire industry – with a few exceptions – was forced to change its tune. Earlier this year, CEO Chris Kempczinksi said it was simply more affordable for customers to eat at home. This dynamic has persisted through the end of summer. According to the latest Consumer Price data, the annual rise in the cost of eating out is four times greater than eating at home.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
Related: McDonald’s menu adding a bigger, better take on the Big Mac
