McDonald's Sales Slump: $5 Meal Deal & New Burger to the Rescue

McDonald's reports a 1% decline in global sales for Q2 2024, with a 0.7% drop in the US and a 1.1% fall internationally. Profit plunges 12% as deal-conscious consumers cut back.

"...shift sentiment towards the brand around value and affordability" — Joseph Erlinger, McDonald's USA President

In response, the company introduced a limited-time $5 meal deal in June, which boosted sales. The deal includes a sandwich, nuggets, fries, and a drink. Due to its success, McDonald's will extend the deal beyond August in 93% of US restaurants.

Competitors like Burger King, Taco Bell, and Wendy's have also adopted aggressive value offerings.

Strategies for Revival:

• New Burger:

  The "Big Arch": a juicy new burger with two patties, three cheese slices, crispy & slivered onions, pickles, lettuce, and a "tangy McDonald's sauce." https://www.prnewswire.com/news-releases/mcdonalds-reports-second-quarter-2024-results-302207883.html Testing in Canada and two other markets. More markets to come in 2025.

• McCrispy Chicken Expansion:

  The McCrispy chicken sandwich will be available in more markets, along with rewards for members of the MyMcDonald's loyalty program.

• Focus on Value & Loyalty:

  "[We're] focused on...delivering...value and accelerating strategic growth drivers like chicken and loyalty" — Chris Kempczinski, McDonald's Chairman & CEO

Sources:

• https://www.prnewswire.com/news-releases/mcdonalds-reports-second-quarter-2024-results-302207883.html
• https://www.mcdonalds.com/us/en-us/mymcdonalds.html?gad_source=1&gclid=CjwKCAjwnqK1BhBvEiwAi7o0X8nbCTKKME3UDwPKMc78fxUaHpEDBEsoWddTnXPAJ91ynh4gkJ5kKxoC8sYQAvD_BwE&gclsrc=aw.ds
• https://twitter.com/MikeSnider
• https://www.threads.net/@mikegsnider
• https://profile.usatoday.com/newsletters/everyones-talking/