McDeflation Starts in 2016

Customers are demanding big discounts from fast-food chains, and McDonald’s is responding with “McPick 2”.

For only $2, patrons can have two of these items: a McDouble, a McChicken, small fries and mozzarella sticks. This deal starts on Jan. 4 and runs for a limited-time. McDonald’s also plans a return to the Dollar Menu.

A Nov. 21 Business Insider article says Burger King and Wendy’s are offering discounts of their own:

Now McDonald's is back in the game in a big way, and Burger King and Wendy's will be pressured to offer more deals to compete.

Burger King is fighting back with a 10-nugget deal for $1.49. It's also offering coupons for other items through its mobile app.

Wendy's, meanwhile, is offering a "4 for $4" meal that includes a junior bacon cheeseburger, four chicken nuggets, small fries, and a drink — all priced at $4. …

McDonald's says about one-quarter of its customers are motivated by value meals.

The promotions are meant to increase traffic among those customers. But steep discounts can also end up hurting profits.

At the end of the day, the winner of the battle between the three biggest fast-food burger chains will be the customers.

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