McDonald’s sales declined slightly in Q2, but the brand is focusing on providing more value to customers to attract traffic. CEO Chris Kempczinski addressed the challenges the brand is facing due to economic conditions and external pressures in various markets. Despite the decline in comparable sales and systemwide sales, McDonald’s is determined to regain share growth in all major markets.
To combat the impact of rising prices and changing consumer behaviors, McDonald’s has introduced value-focused offerings like the $5 deal in the U.S. and the “McSmart” menu in Germany. These promotions have been well-received by customers, with value meal sales exceeding expectations. In addition to offering value meals, McDonald’s is testing new products like the “best burger” and “the big arch” to drive sales.
The brand is also leveraging its loyalty app to increase sales and customer engagement. With 166 million members worldwide, the app has surpassed expectations and loyalty customers make up 25 percent of global sales. By focusing on digital market share gains and understanding customer preferences, McDonald’s is working to enhance the customer experience and drive more traffic to its restaurants.
Overall, McDonald’s is committed to providing value to customers and adapting to changing market conditions. By offering attractive promotions, testing new products, and increasing the functionality of its loyalty app, the brand is working towards reigniting share growth and driving sales in all major markets.
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