After several disappointing quarters, McDonald’s seems to be on the right track again. New low-cost menus and a partnership with the Minecraft movie allowed the American fast food chain to post increased sales and profits.
Price perception improved
Comparable sales went up 3.8 % last quarter, while earnings per share rose 7.4 % to 3.19 dollars. Growth was 2.5 % in the United States and 4 % internationally. The fast food chain did significantly better than expected, after a difficult period due in part to an E. coli outbreak in the U.S., anti-American sentiment in the Middle East and thrifty consumers.
With low-cost menus and promotions involving the Minecraft movie, the company managed to entice more consumers. The chain is working hard on price perception: “We want to win back low-income Americans as customers”, CEO Chris Kempczinski said. The fast food giant has introduced a snack wrap for 2.99 dollars and menus starting at 5 dollars, and sees that approach seems to be working.
