We do not make any health claims for the new $5 deal at McDonald’s: A McDouble cheeseburger or a McChicken sandwich, four chicken nuggets, french fries and a small soda.
However, we will say this: It is a very good deal for cash-strapped families in a world where fast-food prices have increased over the last couple of years, not just because the cost of ingredients and labor were rising steeply, but because restaurants and other businesses were able to do so as prices for other goods were going up. They felt like they had cover.
Families found themselves spending well over $50 to feed four at fast-food restaurants that used to be affordable.
But, hallelujah, the market reasserted itself without any government mandates or interventions. Customers stopped buying expensive menu items, and McDonald’s responded.
They’re not the only chains to do so. Similar deals are available at rival restaurant chains such as Taco Bell, Burger King and even Starbucks, which now offers a tall iced or hot coffee paired with a mediocre butter croissant for the same $5. …
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Morningstar recently suggested that the profit margin for most McDonald’s franchisees on that $5 deal was probably only about a quarter, although if you sell enough of them, a 5% margin is not insignificant. And it shows you how much money is being made on those combos that reach $15 or even more.
The new $5 deal is becoming popular all over the land of freeway exits and state route locations.
It’s a nice break for families: occasionally.
