Recent times have noticed a trend in which costlier fast food prices are driving customers to opt for home-cooked meals instead, putting a dent in the profits of industry giants that are already feeling the pinch from rising costs of food, labor, and real estate. The impact is evident in the disappointing earnings reported in the first quarter of 2024 by McDonald’s, Taco Bell, KFC, and others.

In response, various fast food chains are trying to entice customers back by temporarily slashing the prices of select meals at certain locations. This month, McDonald’s reintroduced the much-adored $5 value meal. The meal includes the customer's choice of either a McChicken or McDouble, a four-piece chicken McNuggets, medium fries, and a drink. However, this offer was met with dissatisfaction from franchisees, who worry about possible profitability issues, and customers who were let down when they found out the meal will only be available at select locations for a short duration this summer.

Not to be outdone, Burger King has retaliated with its own $5 combo meal deal. This international fast-food giant, which recorded high earnings in the first quarter of 2024, is providing a meal combo that includes a choice of one of three sandwiches, nuggets, fries, and a drink. According to a spokesperson from Burger King, this offer has been in the planning stages since April in collaboration with franchisees and will run for several months.

Wendy’s, another profit-making quick-service restaurant in the first quarter, has launched a $3 breakfast deal. It comprises either a Bacon, Egg and Cheese English Muffin or a Sausage, Egg and Cheese English Muffin, served with a small order of Seasoned Potatoes for only $3. However, this offer is limited to only morning hours until 10:30 a.m. and will be available for a short period.

The unfolding price wars are not confined to the fast-food industry. Target, grappling with four consecutive quarters of dismal sales, announced plans to decrease the prices of 5,000 items, including food and non-food items alike, aiming to help customers save money this summer. Discounted items are set to include milk, meat, bread, soft drinks, fresh fruits and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food, and more.