McDonald’s told franchisees it will spend the coming weeks building a “longer-term” value plan aimed at price-sensitive customers, Bloomberg reported.
- In the second quarter, MCD’s U.S. comparable sales rose only 0.8%, down from 3.9% in the first quarter and 2.5% a year earlier.
- McDonald’s recently named veteran operator Skye Anderson president of McDonald’s USA, succeeding Joe Erlinger.
- The company is scheduled to outline its “McDonald’s > NEXT” strategy at an Investor Day in Chicago on September 23.
Shares of McDonald’s Corp (MCD) rose 0.7% before paring the gains on Thursday after a report said that the fast-food company will change its strategy to reverse slowing U.S. growth.
The stock finally closed flat in the regular session. McDonald’s remains far below its 52-week high of $341.75 and has lost ground as investors weigh slower U.S. traffic.
A Two-Step Value Reset
McDonald’s told franchisees it will spend the coming weeks building a “longer-term” value plan aimed at price-sensitive customers, Bloomberg reported, citing a message to operators. Until that framework is ready, the company is assembling what it called a “near-term bridge plan” of temporary menu items and digital promotions tied to products that are already selling. App offers cited by Bloomberg include a $2 breakfast sandwich and free fries with a $1 minimum purchase
In the second quarter, U.S. comparable sales rose only 0.8%, down from 3.9% in the first quarter and 2.5% a year earlier. Global comps increased 1.3%. Higher average checks masked fewer visits.
Chief Executive Chris Kempczinski told investors on the second-quarter earnings call in August that the problem was execution, not strategy. An Everyday Affordable Price menu of items under $3 rolled out unevenly; management said about one-third of restaurants did not follow pricing guidance. At the same time, the chain scaled back digital deals, including a buy-one-add-one offer. Executives later said those value missteps accounted for most of the traffic shortfall.
The same day it reported results, McDonald’s named veteran operator Skye Anderson president of McDonald’s USA, succeeding Joe Erlinger. The company also pushed its 50,000-restaurant target to 2028 and is scheduled to outline its “McDonald’s > NEXT” strategy at an Investor Day in Chicago on September 23.
How Did MCD Retail Traders React?
On Stocktwits, retail sentiment around MCD stock stayed ‘bullish’ over the past 24 hours, while message volume remained at ‘normal’ levels.
MCD stock has fallen 19% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<