Jessica Wohl. Published on July 27, 2018.
McDonald’s is adding yet another price-focused offer and giving local markets more say in advertising for the morning rush after its national value strategy and breakfast ads failed to increase visits to its restaurants. McDonald’s U.S. same-store sales increased 2.6 percent in the second quarter, marking the chain’s slowest U.S. growth since the first quarter of 2017.
Visits to U.S. McDonald’s restaurants fell for the second consecutive quarter after rising 1 percent in 2017. Plus, the national introduction of fresh beef Quarter Pounder patties is slightly slowing down operations.
Although McDonald’s profit and revenue exceeded analysts’ expectations, its shares fell about 1.7 percent on Thursday, when the results were issued. Much of the blame in the U.S., executives said on the company’s quarterly call, stemmed from its value positioning.
“It’s the meal deal element where we think we need to be more competitive,” CEO Steve Easterbrook said Thursday. McDonald’s introduced its $1 $2 $3 Dollar Menu in January with a heavy dose of ads from We Are Unlimited. Read more from adage.com…
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