Despite economic uncertainties, McDonald’s second-quarter worldwide comparable sales exceeded Wall Street projections on Wednesday thanks to promotions and inexpensive meal packages that attracted frugal eaters trying to stretch their money. According to statistics provided by LSEG, robust demand in both the U.S. and foreign markets drove a 3.8% increase in worldwide same-store sales, above estimates of a 2.4% increase, which caused its shares to gain 2.3% in early trade.
As businesses like McDonald’s, Domino’s Pizza, and Yum Brands, the owner of Taco Bell, increase their value meals to combat a slowdown in demand, mostly among lower-income households, rivalry among fast-food restaurants has intensified. In April, McDonald’s introduced a limited-time Happy Meal promotion for adults and children that was connected to the “Minecraft” movie in an effort to boost sales. It made McCrispy Chicken Strips a permanent menu item in May.
The $5 dinner bargain and the buy one, add one for $1 deals that were introduced last year are in addition to these promos. Re-engaging low-income customers is “critical,” according to CEO Chris Kempczinski, because they tend to frequent the restaurant more frequently than middle- and high-income groups.
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