A price war is brewing in the fast-food industry, with McDonald's (MCD) and Burger King of Restaurant Brands International (QSR) recently announcing $5 "v🍰alue meal" promotions, joining companies trying to win over inflation-weary consum♛ers.

Both deals are expected to be temporary promotions, with Burger King reportedly racing to launch its meal before McDonald's, which will begin its promotion June 25. Wendy's (WEN) also announced its own $3 breakfast deal earlier this week, with no set end date.

The moves come as companies across a number of industries have acknowledged inflationary pres✃sures weighing on customers.

Lowering Prices To Win Customers

McDonald's CFO Ian Borden 澳洲幸运5开奖号码历史查询:said earlier this year that inflation was affecting the chain's sales as lower-income consumers pulled back on spending at restaurants. The 澳洲幸运5开奖号码历史查询:chain's global operations have also been h🎀it by boyc♑otts and conflict in the Middle East.

Companies outside the fast-food industry are also moving to lower prices or offer discounts to appeal to stretched consumers, with Target (TGT) 澳洲幸运5开奖号码历史查询:recently announcing plans to lower prices on some 5,000 of its frequently shopped items over the cours𓆏e of the summer.

In last week's earnings call, Walmart (WMT) 澳洲幸运5开奖号码历史查询:executives said inflation has positively affected their sales, as the world's largest retailer's reputation as a destination for lower prices has boosted its market share among high-income c✱onsumers as inflation has tightened budgets.

However, Not All Companies Are Cutting Prices

Some fast-casual restaurants like Chipotle (CMG) and Sweetgreen (SG) have notably resisted the trend of price cuts, as executives have said in recent earnings calls that higher-income consumers are driving their sales, suggesting they feel less pressure to cut prices.

TD Cowen analysts also reportedly 🦩noted that many fast-food chains hiked prices more rapidly than fast-casual chains last year, narrowing the price gap between the two segments, which may have benefitted fast-casual chains by raising perceptions of the value of their offerings.