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McDonald's is changing up its dollar menus:
The world's largest restaurant chain, facing heavy competition in the U.S., will launch a new value-priced menu nationally next year. The lineup will offer items for $1, $2 and $3, the company said on Tuesday.
[...] But McDonald's is adding the new menu from a position of strength. It has seen U.S. restaurant traffic grow for two consecutive quarters, following years of declines. With the new value lineup, the company is trying to lock in those gains, said Michael Halen, an analyst at Bloomberg Intelligence.
All-day breakfast, "premium" burger options, McCafes, dollar soft drinks, 2-for-$5 deals, and UberEATS delivery seem to have kept McDonald's strong amid changing consumer attitudes about fast food:
Aggressive U.S. promotions included $1 any-size soft drinks, $2 McCafe smoothies and espresso drinks and McPick 2 offers of two items for $5. The changes, part of a turnaround plan under CEO Easterbrook, came as McDonald's catches up with Chipotle, Wendy's Co and other chains that raised the bar for what consumers can expect from quick-serve restaurants.
McDonald's shares have climbed 65 percent since Easterbrook was named CEO in March 2015, well ahead of Wendy's 37 percent gain and nearly triple the S&P 500's rise over the same period.
Also at NYT.
Previously: All-Day Breakfast Boosts McDonald's Profits
America Gets Even Fatter From 2015-2016
(Score: 2) by Oakenshield on Wednesday October 25 2017, @11:55AM (7 children)
I thought that was a pretty low bar. They have been hemorrhaging customers. Their giveaway promotions have not succeeded. Wall Street thinks they pay their employees too much. And their employees (around here anyway) look like homeless hippies rounded at a heroin raid. Dreadlocks, gauges, and tattoos.
(Score: 3, Interesting) by takyon on Wednesday October 25 2017, @11:57AM
Chipotle's profit ravaged by hurricanes, hack and high avocado prices [cnn.com]
Chipotle is starting to look like a case study. Not the good kind.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 3, Funny) by LoRdTAW on Wednesday October 25 2017, @12:09PM (3 children)
By me they are doing fine. No dirty hippies behind the counter either.
(Score: 2) by Oakenshield on Wednesday October 25 2017, @12:25PM (2 children)
Maybe they cleaned up around here too. I don't know since I haven't been back since the E. Coli outbreak in 2015. The Norovirus outbreak this year clinched it for me if I even thought about ever going back. I just figured the whole company was run by dirty hippies and I didn't want to be caught up in a hepatitis outbreak. :-) Not the appearance of cleanliness and hygiene that I expect from places I want to eat from.
(Score: 2, Troll) by Runaway1956 on Wednesday October 25 2017, @02:07PM (1 child)
Why? Did they charge you extra for the E. Coli, or was it gratis? Novovirus may be worth paying extra, but not much. Now, hepatitus? That's nasty. Hippies and illegal aliens, they should all be sent back where they came from!!
What's that, Granddaughter? Where do hippies come from? I'm not sure, Baby - maybe from the moon? We can just send them to the moon, and if no one ships them back, everything is good.
(Score: 0) by Anonymous Coward on Wednesday October 25 2017, @04:05PM
WTF? Been eating a few shrooms before posting?
(Score: 4, Insightful) by richtopia on Wednesday October 25 2017, @03:43PM (1 child)
A few years ago McDonald's was trying to replicate Chipotle's success by increasing quality and prices. More recently McDonald's realized that everyone associates McDonald's with cheap fast food, so they doubled down on promotions for budget foods, like this 1$ menu and breakfast all day. It is what drove the most recent quarter breaking targets. This strategy makes a lot of sense, as McDonald's has retained some of the higher profit margin "deluxe" options, which is often upsold to customers who came in for the budget items.
(Score: 2, Informative) by Anonymous Coward on Wednesday October 25 2017, @04:09PM
Every place upsells. I often visit a place with coupons in hand determined to pay $5. I end up paying $10+ to get what I actually want. I applaud them for making the coupons such that there is no way to actually get what you want with them no matter how much you try.