Waiting 30 mins for the McRib… worth it. McDonald’s served up hearty earnings after more fast-food lovers headed to the Golden Arches last quarter. McD’s same-store sales in the US jumped 10%, thanks in part to the “farewell tour” of its cult fave McRib. Abroad, same-store sales spiked ~13% — and make up over half of all quarterly revenue — thanks to stronger demand in countries like the UK, France, and Germany.
- Nugget nostalgia: McD’s “adult Happy Meal” promo drove the highest weekly digi-transactions ever in the US. Half of the meals sold out in the first four days.
- Deep-fried footprint: While McD’s execs expect a “mild to moderate” recession this year, they still plan to open nearly 2K new restaurants — 100+ more than they had forecast last year.
Unwrapping deals… Inflation’s finally cooling, but many consumers are trading down from full-service restaurants as budgets stay tight. Nearly a quarter of consumers say they’ve turned to fast-food since it can sometimes be cheaper than cooking at home. But not all combos are created equal:
- Fancy fries: Menu prices at rivals like Chick-fil-A and Taco Bell rose about 15% from 2021 to last year, while Wendy’s prices soared 35% in the same period.
- Slow rise: McDonald’s — which actually decreased prices 5% — said that while lower-income consumers are ordering less, they’re returning more frequently than in previous quarters.
Consistency is king… but surprise is queen. McDonald’s has been relatively consistent with its low prices and classic McMenu items, but it has also sprinkled in spontaneity with buzzy promos. While rivals have leaned on higher prices to raise revenue, McD’s leans on cult faves and fresh tastes to juice demand. Last year, McD’s celeb-inspired meal collabs with stars like Travis Scott, BTS, and J. Balvin were key in driving digital sales.