"McDonald's reported solid results: global comparable sales up 3.6 percent, U.S. sales up 2.4 percent, revenue of $7.08 billion. The company is outperforming most competitors, but in a brutal environment: Fast-food traffic is down 2.3 percent industry-wide this year, worse than the 1.6 percent drop across all restaurants, according to market-research firm Black Box Intelligence. McDonald's Extra Value Meals now account for about 30 percent of U.S. transactions, the company reported."
"But McDonald's CEO Chris Kempczinski said McDonald's will measure its success "first by gaining share of lower-income consumer traffic, and second by improving value and affordability experience scores." Traffic first. Profits later. And why is that? Well, I've written before about how McDonald's is the undisputed champion of nostalgia marketing. It brought back the Hamburglar. It made Grimace's birthday go viral. It launched Adult Happy Meals. It returned the Snack Wrap after fans petitioned for years."
McDonald's posted solid third-quarter results with global comparable sales up 3.6 percent, U.S. sales up 2.4 percent, and revenue of $7.08 billion. The company is outperforming peers despite a brutal industry backdrop where fast-food traffic is down 2.3 percent year-to-date. Extra Value Meals now represent about 30 percent of U.S. transactions, with $40 million spent on marketing this quarter and $90 million expected in franchisee support for discounts. Management prioritizes gaining lower-income consumer traffic and improving value and affordability scores over immediate profit, while relying on nostalgia-driven campaigns to create long-term customer memories.
Read at Fast Company
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