Following on from the less than stellar second quarter financials posted by McDonald’s Corporation on July 29^th, analysts are evaluating the impact of the $5 Meal Deal.  CEO of McDonald’s Christopher Kempczinski indicated that the chain has lost traffic from the demographic earning less than $100,000 per year family income.  The $5 Meal Deal promotion was introduced as a means of regaining loyalty and increasing revenue.  Researchers have shown that the increase in individual franchised stores sales from the $5 Meal Deal ranged from 0 to 3 percent with an average of approximately 1.3 percent according to Kalinowski Equity Research.

McDonald’s intends to extend the Meal Deal given that competitors have introduced similar promotions that inevitably will become more than “temporary”.