- A core-satellite portfolio splits investments into stable core holdings and higher-risk satellite picks.
- The core is usually 60% of the portfolio, with satellites at 40%.
- It blends passive index investing with active opportunity bets.
McDonald's brought back its value menu last year, and now Subway is matching. Fifteen items priced under $5 hit more than 18,000 U.S. locations this week, the company said.
The fast-food price war is back, and Subway is the latest big chain to pick a side.
The lineup includes $3.99 six-inch sandwiches and wraps, along with a rotating $4.99 "Sub of the Day." Customers can add chips and a drink for $2 more, which keeps a full meal under $7.
Four "Deli Faves" sandwiches anchor the cheap side: BLT, Cold Cut Combo, Spicy Pepperoni, and Ham & Salami. Subway is also adding "Protein Pockets," tortilla wraps the company says pack more than 20 grams of protein.
The $4.99 daily sub rotates through items like Meatball Marinara, Classic Tuna, and Sweet Onion Chicken Teriyaki, depending on the day.
Fast-food chains have spent the last year leaning hard into value as customers pull back on premium spending. McDonald's launched a nationwide menu with items under $3 and a $4 meal earlier this year, which set the floor for the rest of the industry.
Subway's North America CMO Dave Skena said the menu shows customers don't have to pick between eating well and saving money. Translation: the chain is willing to take a margin hit to keep traffic up.
That math depends on volume. Cheaper menus only work if more people walk in.
The menu is in more than 18,000 U.S. stores, with prices likely higher in California, Washington, Alaska, and Hawaii. Subway runs more than 35,000 stores worldwide, most of them owned by franchisees rather than corporate.
The deals are available in stores, online, and on Subway's mobile app. Franchisees, not corporate, will absorb most of the margin pressure that comes with the new prices.
That tension between corporate marketing and franchisee margins has played out at McDonald's and Wendy's before, and it will likely show up here too.
Wendy's and Taco Bell will likely follow with their own value pushes in the next quarter. The bigger question for investors is whether traffic gains hold up when promotions end, or whether discount menus simply become the new normal.
Either way, the era of fast food trying to push higher prices on customers looks over for now. The value menu is back as the main competitive lever.
