McDonald’s New Sandwiches Bolster Bottom Line

A new line of burgers, plus a $1 drink promotion, has helped reverse slumping sales.

July 26, 2017

OAK BROOK, Ill. – Recent efforts by McDonald’s to turnaround falling foot traffic and slumping sales has paid off with a more positive second quarter, the Wall Street Journal reports. The QSR focused on getting customers back into its restaurants with a new line of burgers and a $1 beverage promotion. “It’s a market share fight,” Steve Easterbrook, McDonald’s CEO, said to investors this week.

The new menu items have been launched with an eye to pleasing the chain’s core, price-conscious customer. Self-order kiosks, delivery options and a mobile order and payment app also helped to lure in new and bring back old customers. Plus, many restaurants have been remodeled with a fresh, modern look. In addition, the chain launched fresh burgers for its quarter-pound size.

“People had quit giving McDonald’s a chance,” said Trip Miller, managing partner at Gullane Capital Partners. “To get people to see the changes you’re making, you have to drive them in the door. They may not be getting as fast of an experience as they were a year or two ago but it’s a higher quality experience.”

While the “fast” aspect of McDonald’s service had declined, order accuracy and quality perception improved. Easterbrook told investors that the kiosks and app should speed up ordering as well. The burger chain experienced better-than-expected U.S. same-store sales during the second quarter.

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