Latest news with #MealDeal
Yahoo
an hour ago
- Business
- Yahoo
McDonald's Gets Good News (And It's Good for Customers, Too)
McDonald's is a giant in the fast food industry, but it's not like it was when the chain launched back in 1940. According to the McDonald's Corporation, the restaurant chain was founded in 1940 when "Dick and Mac McDonald open McDonald's Bar-BQ restaurant on Fourteenth and E streets" in San Bernardino, CA. From the 1950s, McDonald's had their famous "golden arches" design. "The McDonald brothers insisted that their architect design an attention catching building that would highlight their Speedee Service System," the company states on their website. Today, McDonald's has lots of competition from not only fast food chains but also other chains, such as casual restaurants, sub shops and sandwich shops. But, one move they recently made is turning out to be a smart one. McDonald's relaunched its popular Snack Wrap on July 10, and it's paying off, literally. According to Placer data information provided to Restaurant Dive, the fast food chain has enjoyed a double-digit growth following Snack Wrap relaunch of the Snack Wrap. That's good news for McDonald's and also for customers who want them to keep the Snack Wrap around. "Visits were up 15% on July 10 compared to the year-to-date average and 11% compared to the year-to-date weekday average," Restaurant Dive reports. "On July 11, visits increased 22.3% compared to the year-to-date average, and 7% for the year-to-date respective weekday average." That's an extra good showing, because it's bigger than the kick off of last summer's $5 Meal Deal promotion, R.J. Hottovy, head of analytical research at Placer, told Restaurant Dive in an email. "That value deal helped boost same-store sales by 0.3% during Q3 2024," the publication added. Hottovy told Restaurant Dive that "consumers responded favorably to the return of McDonald's Snack Wrap" according to their research, "indicating a meaningful lift in daily visits during the first three days of the relaunch compared to year-to-date averages." Hottovy added, "The Snack Wrap's successful comeback is the latest example of a revived product finding success, reinforcing the power of nostalgia in today's QSR limited-time offers."McDonald's Gets Good News (And It's Good for Customers, Too) first appeared on Men's Journal on Jul 17, 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hindustan Times
02-07-2025
- Business
- Hindustan Times
McDonald's expands menu with new burger to its menu; What it is, price and where you can get
McDonald's has expanded its value meal package by introducing a new burger to its nationwide menu. McDonald's stated on its website that it is "moving up to the big leagues" after launching the Daily Double in Chicago, Miami, and Seattle.(Unsplash) McDonald's stated on its website that it is "moving up to the big leagues" after launching the Daily Double in Chicago, Miami, and Seattle. American cheese, two beef patties, shredded lettuce, sliced onions, tomato, and mayonnaise are all included in the Daily Double, which will appear on McDonald's McValue Meal Deal bundle menu on July 22. Starting at $5, the Meal Deal bundle comes with a 4-piece chicken McNugget, small fries, a small soft drink, and a selection of sandwiches. At the moment, there are two sandwich options: a McDouble and a McChicken. 'You're getting more, for less' when you choose the Daily Double option in the Meal Deal bundle, according to McDonald's. Boycott against McDonald's The burger was launched when a grassroots campaign organization, the People's Union USA, planned a week-long boycott of McDonald's. The boycott, which took place from June 24 to 30, was announced on Instagram by the group, which accused the restaurant chain of overcharging customers and other business misconduct. McDonald's strongly refutes claims of price gouging. In May, McDonald's USA president Joe Erlinger stated in an open letter that franchisees determine the menu prices for their eateries. 'In doing so, they work hard to minimize the impact of price increases on our fans,' the president said. In the past, the People's Union USA has advocated for boycotts of General Mills, Nestlé, Walmart, and Amazon. Also Read: US revises travel warning for Israel as Iran issues 'fatwa' against Trump, Netanyahu; Full details here McDonald's launches new two treats for customers Last month, McDonald's introduced two new ice cream treats, including Hershey's S'mores McFlurry. Hershey's milk chocolate, marshmallows, graham crackers, and vanilla soft serve are the ingredients that are used in making the McFlurry. According to McDonald's website, 'Whether you're looking to grab a sweet snack before lounging around the campfire or looking to satisfy your summer craving, the HERSHEY'S S'mores McFlurry will be your go-to summer dessert.' For a brief period, McDonald's also offered a Blueberry & Crème Pie, which is filled with vanilla crème and blueberries rather than the traditional apple filling. Its portable baked apple pie is the restaurant chain's signature dish.
Yahoo
18-06-2025
- Business
- Yahoo
The Top 5 Analyst Questions From McDonald's's Q1 Earnings Call
McDonald's faced a challenging Q1, as revenue came in below Wall Street expectations and same-store sales declined. Management attributed these results to mounting economic pressure on lower and middle income consumers, particularly in the U.S., where CEO Chris Kempczinski noted, 'QSR traffic from middle income consumers fell nearly as much as the low income cohort.' Severe weather, continued inflation, and broader macroeconomic uncertainty also weighed on performance. Despite these headwinds, McDonald's highlighted traction from its new value platforms and global marketing efforts, aiming to stabilize traffic amid a shifting industry landscape. Is now the time to buy MCD? Find out in our full research report (it's free). Revenue: $5.96 billion vs analyst estimates of $6.12 billion (3.5% year-on-year decline, 2.7% miss) Adjusted EPS: $2.67 vs analyst estimates of $2.67 (in line) Operating Margin: 44.5%, in line with the same quarter last year Locations: 43,756 at quarter end, up from 42,018 in the same quarter last year Same-Store Sales fell 1% year on year (1.9% in the same quarter last year) Market Capitalization: $209 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dennis Geiger (UBS) asked how U.S. sales momentum could improve following strong marketing campaigns; CEO Chris Kempczinski emphasized that execution on value and menu innovation will be critical for growth. David Palmer (Evercore) questioned the divergence in international market performance versus the U.S.; CFO Ian Borden highlighted positive share gains where value and menu innovation aligned, despite ongoing inflation. David Tarantino (Baird) pressed on whether sharper entry-level price points are necessary; Kempczinski noted the $5 Meal Deal's incrementality and flexibility in adapting value menus. John Ivankoe (J.P. Morgan) asked about core menu price variability and the outlook for menu innovation in chicken; Kempczinski stressed local pricing discipline and the anticipated halo effect from the McCrispy platform. Eric Gonzalez (KeyBanc) questioned if there is enough premium product innovation to sustain sales beyond short-lived promotions; Kempczinski pointed to a pipeline of new menu news throughout the year to support baseline growth. In the coming quarters, the StockStory team will closely watch (1) the effectiveness of McValue offerings and the impact of new product launches in driving guest count recovery, (2) margin stability as inflation and mix shifts play out across regions, and (3) progress in key international markets, including the U.K. and France, as localized strategies are deployed. Execution on beverage initiatives and technology integration will also be important indicators of McDonald's ability to adapt and compete. McDonald's currently trades at $292.70, down from $319.62 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
MCD Q1 Earnings Call: Consumer Pressure, Menu Innovation, and Value Initiatives Shape Outlook
Fast-food chain McDonald's (NYSE:MCD) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 3.5% year on year to $5.96 billion. Its non-GAAP profit of $2.67 per share was in line with analysts' consensus estimates. Is now the time to buy MCD? Find out in our full research report (it's free). Revenue: $5.96 billion vs analyst estimates of $6.12 billion (3.5% year-on-year decline, 2.7% miss) Adjusted EPS: $2.67 vs analyst estimates of $2.67 (in line) Adjusted EBITDA: $3.19 billion vs analyst estimates of $3.28 billion (53.5% margin, 2.8% miss) Operating Margin: 44.5%, in line with the same quarter last year Free Cash Flow Margin: 34.2%, up from 29.9% in the same quarter last year Locations: 43,756 at quarter end, up from 42,018 in the same quarter last year Same-Store Sales fell 1% year on year (1.9% in the same quarter last year) Market Capitalization: $223.1 billion McDonald's first quarter results were shaped by broad-based consumer pressures, particularly among low and middle income groups, as management cited macroeconomic uncertainty and dampened industry traffic in key markets. CEO Chris Kempczinski pointed to the impact of inflation and reduced consumer sentiment, especially in the U.S., noting, 'Unlike a few months ago, QSR traffic from middle income consumers fell nearly as much [as low income], a clear indication that the economic pressure on traffic has broadened.' Looking forward, management remains cautious about the near-term environment but expects improvement as new value offerings and menu innovation roll out. Kempczinski emphasized the importance of operational execution and highlighted upcoming product launches, including McCrispy Chicken Strips and expanded beverage offerings. While the leadership team reaffirmed its full-year targets, CFO Ian Borden noted, 'We remain focused on optimizing our run the business spend as we continue to invest in our strategic growth priorities, such as digital and technology.' Management attributed first quarter performance to a combination of consumer headwinds, strategic value initiatives, and operational changes across major markets. Wall Street's revenue expectations were not met due to industry traffic declines, particularly among lower income consumers. Forward-looking commentary emphasized the need for ongoing menu innovation, improved value perception, and operational discipline. U.S. Value Platform Expansion: The launch of the McValue platform, including the $5 Meal Deal, was central to management's response to declining guest counts. Management described the program as 'resonating with customers' and expects it to continue throughout 2025. Menu Innovation Pipeline: New products such as McCrispy Chicken Strips and upcoming snack wraps are intended to drive incremental traffic. Management sees these innovations as key to attracting new and returning customers. International Market Performance: While most major international markets faced similar pressures, management highlighted market share gains in France following value-focused initiatives and menu news like the Big Arch burger. Operational Structure Changes: McDonald's established a global Restaurant Experience Team and introduced category leadership for beef, chicken, and beverages. This is designed to accelerate product innovation and improve execution across markets. Customer Satisfaction Focus: The company reported all-time high customer satisfaction scores in the U.S. and major international markets, attributing improvements to both value platforms and operational enhancements. Management's outlook for the remainder of the year is shaped by continued economic uncertainty, but is anchored in expanded value platforms, new product launches, and a focus on operational execution to drive guest count-led growth. Macroeconomic Headwinds Persist: Management remains cautious about consumer sentiment, especially among low and middle income groups, and acknowledges ongoing challenges from inflation and global uncertainty. Product and Marketing Rollouts: Upcoming launches such as McCrispy Chicken Strips, expanded beverage tests, and brand partnerships (e.g., Minecraft Movie campaign) are expected to support sales momentum. Execution and Cost Discipline: Management emphasized the importance of running efficient operations, optimizing spending, and leveraging digital and technology investments to protect margins and support growth. Dennis Geiger (UBS): Asked about U.S. sales trajectory given early success with the Minecraft campaign and new menu items. Kempczinski noted momentum is expected to build as the year progresses, with execution remaining key in a pressured environment. David Tarantino (Baird): Inquired if the McValue platform requires sharper price points to drive incrementality. Kempczinski said the $5 Meal Deal is performing well but is open to adjustments for greater impact. Brian Harbour (Morgan Stanley): Questioned if there is risk of negative mix shift as more value items are introduced. Borden explained that value and innovation must be balanced to ensure both traffic and profitability. Jon Tower (Citi): Sought details on the beverage test and its potential impact. Kempczinski described the opportunity for higher-margin growth but said investment needs and positioning are still being evaluated. Sara Senatore (Bank of America): Asked if QSR traffic declines reflect share loss to other segments. Kempczinski argued that reduced visit frequency, not segment shift, is the main driver, especially in breakfast and other dayparts. In the coming quarters, the StockStory team will be monitoring (1) the effectiveness of new value initiatives and menu innovations in stabilizing U.S. guest counts, (2) the operational impact of the global Restaurant Experience Team on product rollouts and execution, and (3) progress in international markets, particularly regarding market share gains and consumer sentiment. These factors will be critical to tracking McDonald's ability to regain momentum. McDonald's currently trades at a forward P/E ratio of 25.3×. Should you double down or take your chips? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Largest US restaurant chain is closing hundreds of stores at an alarming rate
According to franchise disclosure documents, Subway had fallen below 20,000 U.S. locations for the first time in 20 years. The sandwich chain has been losing restaurants in the U.S. for the last eight years in a row. In 2024, it closed 631 restaurants, making the total number in the country 19,502. Despite this loss, Subway is still the largest restaurant chain in the country. There are 37,000 Subway locations globally, marking the second consecutive year the sandwich chain has grown with its international presence. In a statement to CNN, the company said it would continue to review its presence in the U.S. 'using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees.' Subway said it is 'opening new restaurants as well as relocating or closing locations as needed, to ensure a consistent, high-quality and convenient guest experience.' The news of the sandwich chain's closures comes months after it canceled its $6.99, six-inch Meal Deal back in November 2024 after the promotion failed to take off. The deal was reportedly pulled from stores on November 27 due to poor performance, just weeks after it was introduced on National Sandwich Day (November 3). The promotion included any six-inch sub and a choice of a small drink and chips, or two cookies for $6.99. 'The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test,' a message from Subway read at the time. 'While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.' 'Subway's approach to value is thoughtful and strategic, leveraging data to help balance consumer needs while protecting franchise profits,' the company said. 'We continuously test new value platforms aimed at helping drive profitable traffic and encouraging repeat visits.' Retail companies have also struggled this year, with multiple JCPenney stores across seven states set to close by the end of May. JCPenney did call the seven closures 'isolated' and further stated there are 'not plans to significantly reduce our store count.' The company previously said the closures were 'unrelated to' the brand's recent merger with the SPARC Group, which formed Catalyst Brands, an organization of six major retailers.
