After facing challenges in the second quarter, McDonald’s executives are strategizing on how to win back consumers with value deals. U.S. President Joe Erlinger emphasized the importance of maintaining a long-term perspective and focusing on affordability to ensure the company’s success in the long run. He acknowledged the industry and competitive challenges that lie ahead but remains optimistic about McDonald’s ability to bounce back.
Despite efforts to revamp its value meal platform, McDonald’s reported disappointing results that fell short of analysts’ expectations. Same-store sales took a hit across all segments, particularly in the U.S. market where sales declined by 0.7%. Erlinger recognized the areas where the company was struggling, including negative same-store guest counts and decreasing items per transaction, which impacted check averages.
In a bid to drive traffic back to its restaurants, McDonald’s plans to extend its $5 value meal promotion in most of its U.S. markets. According to a memo obtained by CNBC, the majority of locations have voted to prolong the promotion past its original end date late this month, with some planning to extend through August. Erlinger hinted at upcoming decisions regarding extensions and future value offerings in a recent memo to the U.S. system.
During a conference call, McDonald’s executives expressed confidence in the financial capabilities of franchisees in the U.S. to invest in the value offering. They are currently collaborating with owners to evaluate the overall profitability of the promotion and how it can be sustained in the long term.
McDonald’s is facing a challenging period, but the company remains determined to regain its position as a leader in value and affordability. By extending its $5 value meal platform and collaborating closely with franchisees, McDonald’s is hoping to win back consumers and drive sales in the upcoming quarters. With a renewed focus on affordability and long-term strategy, McDonald’s is working towards a brighter future in the competitive fast-food industry.