Budget-conscious Americans are making a comeback McDonald’s as the fast-food giant doubles down on value meals, discounted packages and limited-time promotions aimed at stretching diners’ cash.

The strategy appears to be working, as U.S. sales rose 6.8% in the fourth quarter, the biggest jump in about two years, and lower price offers and aggressive promotions once again drove traffic. restaurants. Analysts had expected a smaller increase of 4.9%.

McDonald’s Chief Executive Officer Chris Kempczinski said there is growing evidence that the company’s value push is working, particularly among lower-income consumers who have been hardest hit by inflation.

A McDonald’s restaurant in San Francisco on July 29, 2024. (David Paul Morris/Bloomberg via Getty Images)

Holiday promotions also played an important role in attracting customers. Last December, McDonald’s launched a Grinch-themed meal that the company said delivered “the highest sales day ever.”

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The company revived its Monopoly promotion in October after nearly a decade and launched value deals starting at $5 in November.

Industry analysts say consistency will be key as consumers remain selective about where they spend.

McDonald’s strategy is remarkable considering how many American restaurants struggle to maintain foot traffic. Across the industry, lower-priced chains have fared better than higher-priced competitors as consumers have cut back.

McDonald’s U.S. sales rose 6.8% in the fourth quarter, the biggest jump in about two years. (Mario Tama/Getty Images)

Taco Bell posted a 7 percent increase in same-store sales in the latest quarter and KFC posted 3 percent growth, parent company Yum Brands said last week. Meanwhile, higher-priced Chipotle Mexican Grill posted a 1.7% drop in sales earlier this month.

Renewed customer momentum helped drive stronger-than-expected financial results, underscoring how discount-driven traffic can translate into profits.

Exterior view of a McDonald’s restaurant on May 24, 2024. (Paul Weaver/SOPA Images/LightRocket)

The uptick in traffic translated into stronger financial results. McDonald’s global comparable sales rose 5.7% in the fourth quarter, beating expectations, while adjusted earnings beat Wall Street estimates as revenue rose to more than $7 billion. International markets also contributed to growth, with steady demand in Great Britain, Germany and Australia.

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Going forward, McDonald’s plans to build on its affordability messaging while expanding into beverages such as iced coffees, craft sodas and energy drinks, offerings designed to drive additional visits, especially among younger consumers. A new line of McCafe-branded beverages will launch in the US and select international markets this year after a 500-store test exceeded expectations.

Reuters contributed to this report.