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| McDonald's CEO and chair, Chris Kempczinski, said it was critical to re-engage the low-income consumer. Michael Ochs Archives / Getty Images |
In a competitive fast-food industry where price sensitivity and shifting consumer habits are challenging long-established giants, McDonald’s may have found an unlikely hero in an old favorite: the $2.99 Snack Wrap.
After nearly a decade off the menu, McDonald’s brought back the popular item and it’s already paying off. The reintroduction of the Snack Wrap is more than just a nostalgic nod to longtime fans. For McDonald’s, it represents a broader strategy to win back a crucial customer base: low-income consumers who have been increasingly absent from fast-food counters across America.
A Value Proposition Rooted in Affordability
During McDonald’s second-quarter earnings call, CEO Chris Kempczinski made it clear that value pricing isn’t just an option it’s a necessity. “Re-engaging the low-income consumer is critical,” Kempczinski told investors. These customers, he noted, historically visit McDonald’s more often than middle- and upper-income guests. But in recent years, inflation, price hikes, and growing economic stress have pushed many of them away and not just from McDonald’s, but from the entire quick-service restaurant (QSR) industry.
By bringing back the $2.99 Snack Wrap, the chain is addressing that affordability gap. The menu item isn’t just affordable; it’s a piece of the brand’s identity, beloved by younger consumers and longtime patrons alike. In an industry where customers are increasingly choosy about when and where to spend, McDonald’s is betting that familiar comfort food at a low price can rekindle loyalty.
Franchisees Are On Board And So Are Consumers
The decision to price the Snack Wrap at $2.99 wasn’t made in a vacuum. According to Kempczinski, McDonald’s franchisees who operate roughly 90% of its U.S. locations "recognize the importance" of the price point. So much so that they voted to keep it through the rest of the year.
Chief Financial Officer Ian Borden backed that enthusiasm during the same earnings call, noting a strong early response. “We’re encouraged by the positive consumer reaction so far,” he said. “This comes from pairing the right product with the right value proposition.”
The momentum isn’t just anecdotal. According to data from Placer.ai, a foot traffic analytics firm, McDonald’s saw a 0.8% increase in visits during the second quarter even as overall foot traffic in the QSR space fell 0.7%. In the same period, competing chains including Taco Bell, KFC, and Pizza Hut all owned by Yum! Brands posted a modest 2% increase in global same-store sales. Meanwhile, McDonald’s global same-store sales surged 3.8%, handily beating Wall Street expectations of 2.49%.
The McValue Menu Gets an Upgrade
The return of the Snack Wrap is just one element of a broader value-driven campaign. McDonald’s also quietly updated its McValue menu in recent months. It now features three full meal deals priced at $5 a move designed to reinforce the brand’s image as both accessible and filling, especially at a time when consumers are stretching their dollars further than ever.
With these updates, McDonald’s is reclaiming territory that had begun to drift into competitors’ hands. The fast-food value wars once led by dollar menus and combo deals had waned in recent years, with many chains shifting toward premium offerings. McDonald’s is now steering back into value, but doing so with intentionality: fewer gimmicks, more customer-centered pricing.
Solid Financials Reinforce the Strategy
The earnings report underscored the strategy’s strength. McDonald’s reported diluted earnings per share of $3.14, matching Wall Street forecasts. Revenue reached $6.8 billion, slightly beating analysts’ estimates of $6.71 billion. Shares in the company rose nearly 2% in early trading following the announcement.
The performance highlights how targeted product pricing especially when tied to nostalgia and consumer sentiment can translate into tangible business results. While competitors continue to jockey for market share through digital channels and niche products, McDonald’s is leaning into its heritage and price appeal.
Snack Wraps Tap Into a Broader Cultural Trend
The timing of the Snack Wrap’s return also coincides with a broader cultural movement: Gen Z’s fascination with customizable, snackable foods and beverages. This group is less concerned with traditional meals and more interested in mixing flavors, exploring textures, and expressing personal preferences through what they eat and drink.
Snack Wraps, with their portable form and variety of fillings, perfectly align with that ethos. Their reintroduction not only plays to nostalgia but also feels current even trendy to younger consumers raised on TikTok food hacks and limited-time-only menu drops.
McDonald’s seems to understand this shift. In addition to food revamps, the brand is also experimenting with beverages designed to attract the Gen Z market. In late July, The Wall Street Journal reported that McDonald’s would soon begin testing “Dirty Sodas” fizzy drinks infused with fruit, syrups, and other flavorful add-ins, inspired by the now-defunct CosMc brand. The new drinks are set to roll out in hundreds of locations nationwide starting in September.
Customizable drinks, already a hit at Starbucks and Taco Bell, represent another way to keep Gen Z engaged especially if they’re social-media friendly. With Gen Z’s strong influence on spending trends, these innovations reflect McDonald’s intent to future-proof its appeal.
A Blueprint for Reengaging the Mass Market
As the fast-food sector continues to evolve, McDonald’s appears to be returning to its roots but with a modern twist. The message is clear: affordable, quality food with a side of innovation can win back both lost customers and new generations.
While the broader industry struggles with rising input costs, menu fatigue, and competition from convenience stores and delivery apps, McDonald’s is showing that a strategic pivot back to value supported by relevant menu items and franchisee collaboration can yield results.
And although the $2.99 Snack Wrap may seem like a small detail in the company’s vast empire, its success speaks volumes about consumer sentiment and pricing psychology in 2025.
For now, the fast-food giant’s low-priced wrap may very well be wrapping up one of its biggest strategic wins in recent memory.
