McDonald's Corp. (NYSE:MCD) shares were trading higher Friday afternoon after the company announced a new $5 meal deal to attract price-conscious customers amid rising fast-food prices.

What Happened: Launching on June 25, this initiative aims to entice customers who have cut back on fast food due to inflation. Joe Erlinger, president of McDonald's U.S., emphasized the company's commitment to "winning the value war."

This move comes as competitors like Burger King (NYSE:QSR) and Wendy's (NASDAQ:WEN) introduce their own value meals, intensifying the competition. Despite concerns from franchisees about potential downsizing from higher-priced options, McDonald's aims to leverage its scale and marketing power to outpace rivals.

What Else: The fast-food giant has faced criticism for significant price hikes over the past decade, leading to a decrease in customer loyalty. Additionally, McDonald's has navigated other challenges, including losing trademark rights to its chicken-based Big Mac in the European Union and ending a drive-thru AI test.

MCD Price Action: McDonald shares were up by 2.41% at $29.87 according to Benzinga Pro.