McDonald's U.S. Sales Rise 0.8% in Q2, Missing 1.06% View on Value-Deal Lapses
Updated
Updated · Fox Business · Aug 4
McDonald's U.S. Sales Rise 0.8% in Q2, Missing 1.06% View on Value-Deal Lapses
3 articles · Updated · Fox Business · Aug 4
Summary
McDonald's posted 0.8% U.S. comparable-sales growth in the second quarter, below the 1.06% analysts expected and well under last year's 2.5% pace.
Two-thirds of the traffic shortfall came from weaker visits by loyal customers after poor promotion of value deals and reduced use of digital offers such as buy-one-add-one specials, CEO Chris Kempczinski said.
About one-third of restaurants failed to follow the chain's everyday affordable-price guidance, while too many operational rollouts slowed service and left some franchisees struggling to execute low-price offers consistently.
Starting next week, McDonald's plans more national digital flash offers and personalized app deals, while cutting non-customer-facing tasks through year-end to simplify operations.
Skye Anderson, a 26-year McDonald's veteran, has been tapped to run the U.S. business and oversee roughly 14,000 restaurants as the company pushes a turnaround.