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McDonald's burger market share rises for 1st time in 5 years

Snacks / Tuesday, June 25, 2019

Extra fries... Pairs with the 40M more "fresh beef" Quarter Pounder burgers that McDonald's pumped out last quarter compared to a year before. McD's revealed that sales of Big Mac's new anti-frozen cousin are up 30% since it introduced the option in 2018 — And for the 1st time in 5 years, it gained market share in the obscurely delicious "informal burger category."

Ronald deserves a Masters Degree... in smiles and supply chain management. The creation of a "fresh beef" option was a major investment by the McDonald's team — It took 4 years to install a new process to go from cow-to-mouth faster and never frozen. Here's what that "massive transformation" included:

  • Designing new fridges to handle fresh beef at the right temperature.
  • Distributing new kitchen utensils (aka spatulas) to every participating franchise about to flip the softer burgers.
  • Training 3,000 restaurant operators to prepare the actual patties.

This is why you invest in your growth... Just as McD's is spending on its supply chain to accommodate the new patties, it's pursuing another major overhaul: The $6B nationwide renovation of the majority of its 14K US stores by 2020. Fresh beef is a case study on how investing big into your infrastructure can cook up major payoffs.

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