The first quarter of the year has been profitable in the U.S. market for McDonald’s. In order to reach higher sales growth of 5.4% compare to analyst expectation of 3.4%, they made some changes in their menu and promotions. McDonald’s said that promotions such as free bacon, a deal to buy two items for $5 and stick-shaped doughnuts helped woo U.S. customers. Also, they have breakfast items available for all day, which is the biggest operational change in McDonald’s history. The changes in menu and promotions have increased sales, but competitions remain fierce, executive said.
Nowadays people do not want to go out to eat, and they order mostly fast food with delivery option. Because of that, McDonald’s is expanding delivery through partners including Uber Eats, Doordash, and etc. in the U.S. The result of all changes came up with the stock price getting higher, and it is up about 11% this year.
In my opinion, this article is about promotion and price. I mentioned promotion, because they have “free bacon, a deal to buy two items for $5 and stick-shaped doughnuts” promotion, which increases their sales. Also, price, McDonalds’ have “two items for $5” deal, that decreases the price of each item, but increases sales overall.
https://www.wsj.com/articles/mcdonalds-says-promotions-in-the-u-s-paid-off-in-latest-quarter-11556627589
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