McDonald's is expanding its $5 value meal to most U.S. markets as customers return to restaurants.

• In most U.S. markets, McDonald's will expand its $5 value meal, citing the promotion as a way to increase customer traffic.
• McDonald's is continuing its promotion in response to competitors such as Burger King and Starbucks offering promotions to attract customers and increase business.
• To increase customer traffic, the fast food giant and its competitors, including Burger King and Wendy's, are providing value meals at lower prices.

The fast food giant is extending its $5 value meal beyond its initial four-week window in most of its U.S. markets, as the offer is driving traffic back to restaurants.

Nearly every business unit, comprising 93% of its restaurants, voted to extend the promotion past its original end date late this month. The memo stated that the majority of locations will extend through August or plan to vote on whether to do so.

The $5 value meal was introduced on menu boards on June 25 and was intended to last for approximately a month. This meal includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. Compared to purchasing these items separately, the combo is significantly less expensive.

""Our message is resonating with our millions of customers, as evidenced by the success of the $5 Meal Deal, which is driving guests back to our restaurants and preventing them from visiting the competition," wrote Myra Doria, national field president, and Tariq Hassan, U.S. chief marketing and customer experience officer, in a memo."

Bloomberg earlier reported the decision to extend the deal.

Restaurants are offering deals to increase traffic, but consumers, especially those with lower incomes, are hesitant to pay higher prices after years of inflation-driven price increases. The meal is facing competition from other chains such as Burger King, Wendy's, Taco Bell, and Starbucks, which are offering deals ranging from $3 to $5 to attract value-conscious consumers in a highly competitive market.

Sustained growth in our business depends on the number of guests we drive.

In May, CNBC reported that Coca-Cola provided additional marketing funds to enhance the initial value offer for franchisees, as some advocates had urged the company to continue making future contributions to ensure the discounted offer's sustainability for operators.

The company is set to report earnings on July 29.

McDonald's declined to comment.