McDonald's plans to provide $5 meal deals in an effort to attract customers back

McDonald's is offering a $5 meal deal to attract cash-strapped customers.

To win back customers, the company announced in March that it will increase the size of its burgers, increase the amount of chicken it supplies, and improve the coffee experience.

McDonald's is battling to keep costs low in California, where a new law boosted the minimum wage to $20 an hour in April.

“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the company’s.

CFO Ian Borden said the U.S. executive team was collaborating with owner-operators. Corporate and franchisees, who manage 95% of McDonald's outlets and weigh in on such offerings, regularly disagree on promotions that potentially cut owners' revenues.

After the news, McDonald's shares rose 2% to $272.80.