The competition for inflation-weary consumers’ wallets is heating up like never before. Gone are the days of menu price increases or shrinkflation. Fast-food chains are racing to provide value-for-money deals to American diners, and the latest name to join the $5 meal-deal bandwagon is Restaurant Brands’ (NYSE:QSR) (TSE:QSR) Burger King.
The $5 Meal Wars Are Here
Earlier this month, McDonald’s laid out plans to bring back its $5 meal deal, overcoming initial apprehensions from its franchises. In fact, McDonald’s (NYSE:MCD) teamed up with Coca-Cola (NYSE:KO) to help its franchises cover some of the costs associated with the deal. A month-long promotion is set to kick off on June 25.
Burger King, however, is not only introducing a $5 meal deal but also aiming to beat McDonald’s in the race by launching the offer before MCD. According to Bloomberg, its meal deal will include fries, a drink, and a sandwich with nuggets. McDonald’s is offering a bundle of small fries, a small soft drink, a sandwich, and a four-piece Chicken McNuggets.
Moreover, Burger King plans to run its meal deal campaign for multiple months. The urgency to launch these campaigns reflects the fast-food industry’s hopes of increasing customer foot traffic, especially as everyday Americans become increasingly budget-conscious. Other fast-food chains are adopting similar strategies, with Wendy’s (NASDAQ:WEN) introducing a $3 English muffin deal. Additionally, Burger King is working on two other value deals that could be introduced later this year.
Is QSR a Good Stock to Buy?
Shares of all three fast-food names on our list today have ticked lower so far this year. However, Wall Street sees a double-digit potential upside in all three names. According to the TipRanks Stock Comparison tool, QSR stock has the highest potential upside of 28.5%.
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