09:15 AM EDT, 05/22/2024 (MT Newswires) -- McDonald's (MCD) franchisee group National Owners Association said an upcoming $5 value meal promotion may not be sustainable for operators in the long run without future contributions from McDonald's, CNBC reported Wednesday, citing a letter sent by the group's board to its membership.

"There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonald's," the group said in its letter, which called the McDonald's business model a "penny profit business, with 10-15% margins," according to the report.

The $5 value meal will be offered for roughly a month, starting June 25, as McDonald's aims to bring back to its stores price-sensitive consumers.

McDonald's did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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