
The “A Minecraft Movie” meal bargain, which was the chain’s biggest marketing campaign ever, has helped McDonald’s sales finally turn around.
After two consecutive quarters of declining sales, McDonald’s US restaurants that have been operational for at least a year saw a 2.5% increase in sales for the quarter that ended on June 30. The reversal was attributed by the chain to its “standout marketing,” which included the introduction of crispy chicken strips and extensive movie promotion.
In conjunction with the release of the Minecraft movie. Pictures and brought in close to $1 billion globally, McDonald’s launched a Happy Meal for children in late March, complete with themed toys and an adult meal.
The campaign increased global sales at stores that have been open for at least a year by 3.8% in 100 markets. Additionally, the corporation said on Wednesday that total revenue increased by 5% to $6.8 billion.
According to CEO Chris Kempczinski, McDonald’s had to update its menu selections and marketing last quarter since low- and middle-class consumers were cutting back on their spending and trips to the restaurant chain.
The trends mainly persisted, Kempczinski said on Wednesday: Low-income customers’ visits “once again declined by double digits versus the prior-year period.” However, middle-class customers’ visits have increased.
Since low-income customers visit McDonald’s more frequently than middle- and high-income customers, he continued, “re-engaging the low-income consumer is critical.” In order to achieve this, it has prolonged the $2.99 price for the Snack Wrap until the end of the year and will still provide value meals.
Kempczinski did concede, however, that “our core menu pricing is most influenced by consumers’ value perceptions,” a reference to the perception held by some that the company has become excessively costly.
Kempczinski acknowledged that value-conscious customers are “too frequently” seeing combination meals that cost more than $10, which is “shaping value perceptions in a negative way.” “That needs to be fixed.”
He did not provide any further information, but McDonald’s is speaking with its US franchisees to generate ideas for adjustments.
McDonald’s is keeping up its pace this quarter due to the popularity of its new menu items and promotions. The business intends to introduce a new “McDonaldland” meal with a mystery-flavored shake next week, targeting nostalgic adults. It’s also revamping its beverage options under the CosMc’s banner at 500 McDonald’s in September following the closure of that spinoff.
The stock of McDonald’s (MCD) opened about 3% higher.
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