McDonald’s sales gains show new discounts are attracting customers
McDonald’s may be hitting its stride. The company’s revamped stores, fresh beef burgers and premium sandwiches — along with its new $1, $2, $3 menu — is clicking more with Americans.
The burger chain reported global same-store sales that topped analysts’ projections in its latest quarter, indicating its new dollar menu and recent breakfast deals in the U.S. are working.
Like others in the American fast-food industry, McDonald’s has been heavily pushing discounted fare to give it a boost in the U.S., where it has 14,000 locations. The company on Monday also cited strength in China, Italy, Germany and Britain.
“They’re appealing to the value customer and appealing to the customer who also wants a slightly nicer atmosphere,” said BTIG analyst Peter Saleh. “McDonald’s is going to start taking back some market share.”
Same-store sales rose 5.5 per cent in the first quarter, the company said in the statement. That compared with the 3.8 per cent gain seen by analysts, according to Consensus Metrix. Domestically, they increased 2.9 per cent, also exceeding projections. U.S. same-store sales have gained for the past three years.
Chief executive officer Steve Easterbrook is looking to new menu items and revamped restaurants to fuel gains. The company has accelerated its Experience of the Future remodels, which it says will be in most domestic locations by 2020. It’s also offering fresh, instead of frozen, beef in certain hamburgers.