$MCD Shifts Away From Deep Discounts as Analysts Say the "Deep Value War Is Over"

$MCD is changing its discount strategy, moving away from its under-$3 Every Day Affordable Price (EDAP) menu and putting more focus on its pricier Extra Value Meals, according to TheStreet.
On the second-quarter earnings call, CFO Ian Borden said inconsistent restaurant-level execution of the EDAP menu and low consumer awareness resulted in lower incrementality than expected. He said these value execution factors accounted for about 2/3 of the customer traffic underperformance relative to expectations for the quarter.
McDonald's plans to launch more national digital flash offers, target loyal users with personalized digital offers, and reallocate marketing dollars toward Extra Value Meals. "We will not get beaten on value," Borden said.
U.S. Bancorp BTIG analyst Peter Saleh said McDonald's, Wendy's, Burger King and Subway have all pivoted their advertising away from low prices, adding that "the deep value war is over, and all have lost."