Are McDonald’s Menu Mix-Ups Paying Off?
Following a disappointing sales dip for McDonald’s (NYSE:MCD) in April, the company has announced better news for the month of May, demonstrating that its increased efforts to cater to customer demands are starting to pay off.
McDonald’s announced that its global comparable sales increased 2.6 percent in May, with the U.S. up 2.4 percent, Europe up 2.0 percent, and Asia/Pacific, Middle East, and Africa up 0.9 percent, Seeking Alpha reports. These increases align with analysts’ expectations, who predicted that global sales at McDonald’s restaurants open at least 13 months would see a 1.9 percent rise.
After a 0.6 percent fall of same-restaurant sales in April, the fast food giant has been making headlines as it attempts to expand its menu, appeal to all taste preferences, and silence critics who complain about the company’s calorie-laden offerings. After dropping the Angus burger, McDonald’s now offers egg white McMuffins, chicken McWraps, and limited breakfast options for late night eaters. The company also added pasta to its Italian menu, and the notorious “Mega Potato” to Japan’s.
Don Thompson, president and CEO of McDonald’s, has worked diligently to help the company compete with rivals while also fielding criticism about the unhealthiness of its menu options. He even announced that he has lost 20 pounds since becoming CEO, demonstrating that one can lead a healthy lifestyle even while eating McDonald’s everyday. In regards to May’s optimistic report he said, “McDonald’s strategic initiatives and diligent focus on the customer generated global comparable sales growth in May amidst ongoing uncertainty in the macro environment.”
The segment saw positive results from the majority of the globe, except Germany and France who posted negative performances. McDonald’s Europe is continuing to focus on enhancing value and breakfast offerings to help appeal to its customers. The U.K. still showed positive results, affording the company its sales increase in Europe of 2.0 percent, but the area remains a work in progress.
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