Operators at McDonald's are being advised to focus on winning over low-income consumers in order to improve the company's performance, according to a memo from a key executive.

• McDonald's executives are planning to regain customers through value promotions as they seek to prolong the $5 value meal program.
• On Monday, the company reported results that missed analysts' estimates on both the top and bottom lines, and its same store sales declined in all segments, including its key U.S. market, with a 0.7 percent fall.
• According to a memo obtained by CNBC, U.S. President Joe Erlinger stated that the U.S. system continues to lose traffic share among low-income consumers.

Executives announced that they are refocusing on attracting consumers with deals after a challenging second quarter, as they sought an extension of their $5 value meal platform.

In a memo to the U.S. system, President Erlinger stated that McDonald's faced challenges in selling diners on affordability. He predicted that industry and competitive challenges would persist throughout the year. Erlinger advised operators to focus on building momentum for next year and emphasized the importance of having a long-term mindset for the company's success.

""To regain our position as the leader in value and affordability, we must take a coordinated and sustained approach that demonstrates our commitment to the customer," he stated."

The company's results on Monday missed analysts' estimates on both the top and bottom lines. Despite declining same-store sales in all segments, including its key U.S. market, where they fell 0.7%, the company had anticipated the challenges and the stock rose on the results.

Erlinger acknowledged that the company was falling short in the U.S. this quarter, with negative same-store guest counts for the fourth straight quarter and declines in the number of items per transaction hitting check averages.

Although we are still losing traffic share among low-income consumers, trial rates for our value meal launch were highest among this group, and sentiment around McDonald's value has begun to improve.

The company will continue its $5 value meal promotion beyond its initial four-week window in most of its U.S. markets, as the fast-food giant reports that 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, according to a memo obtained by CNBC last week. The memo stated that the majority of locations will extend through August, or plan to vote on whether to do so.

In Monday's memo, Erlinger hinted at potential decisions regarding extensions and future value offerings. During the call, executives stated that U.S. franchisees are financially capable of investing in the value offering, and they are currently collaborating with owners to evaluate its overall profitability.

Since our inception, affordability and value have been integral to our business. However, we need to address our affordability gap and demonstrate to our customers that we are attentive to their needs. We have a robust plan for the second half of the year, but there are crucial decisions that must be made in the coming months to ensure our competitiveness and maintain momentum leading into 2025.

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