The news: McDonald’s is recalibrating its menu to strengthen its appeal to consumers of all income levels.

• It will roll out its revamped McValue menu nationwide starting April 21.
• The menu will include items under $3 as well as a $4 breakfast meal deal.
• It is leaning into premium products like the Big Arch burger to attract diners with more discretionary dollars to spend.

Why it matters: McDonald’s bifurcated strategy reflects the K-shaped economy. Companies can’t afford to alienate cost-sensitive customers, but they also need to appeal to higher-income consumers, who account for the vast majority of growth. In McDonald’s case, that means emphasizing value with its meal deals while also running limited-time promotions like its McNugget Caviar kits to elevate its fast-food lineup.

Striking that delicate balance is tricky, but CEO Chris Kempczinski contends that both strategies are necessary to drive growth and reduce margin pressure on operators. By simultaneously marketing meal deals alongside more expensive new menu items, the goal is to boost visit frequency and encourage upsells. With 22% of consumers surveyed by EY-Parthenon saying they would cut restaurant, takeout, and food spending if facing financial problems, offering higher-priced products can act as a hedge in times of economic uncertainty.

The implications: McDonald’s approach makes sense on paper, but it’s not without risks. Leaning too heavily on premium menu items and limited-time offers could undermine the fast-food chain’s value perception among more price-sensitive diners, possibly reversing the company’s efforts to restore its reputation for affordability.

There’s also no guarantee that diners will be interested in its new offerings. Despite considerable social media buzz, traffic to McDonald’s restaurants increased just 2.2% during the week of the Big Arch’s launch, per Placer.ai. By comparison, the chain’s Grinch Meal and Snack Wrap promotions generated double-digit traffic increases last year. That indicates that consumers require more than newness alone to venture to a fast-food restaurant.