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☆ McDonald's isn't as cheap as it once was, and it's losing low-income customers
▼ + stars: | 2023-10-31 | by ( Nancy Luna | ) www.businessinsider.com time to read: +4 min

McDonald's said it's gaining middle- and higher-income customers, who are trading down to its menu. McDonald's expects to raise menu prices by about 10% this year — on top of a 10% increase last year. AdvertisementAdvertisementMcDonald's said Monday that customers continue to count on the chain for affordable meals, even as it raises menu prices. "Providing affordable options for our customers has always been core to McDonald's' success," Borden said. But the definition of "cheap" is changing in the face of persistent inflation — and McDonald's is far from the only restaurant chain raising prices.

Persons: McDonald's, it's, —, Chris J, Kempczinski, Ian Borden, That's, Borden, Mark Kalinowski, We've Organizations: Service, Mac, XM, Black Box Intelligence Locations: Orange , California

☆ McDonald's to raise royalty fees for new franchised restaurants for first time in nearly 30 years
▼ + stars: | 2023-09-22 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

McDonald's franchisees who add new restaurants will soon have to pay higher royalty fees. It's the first time in nearly three decades that McDonald's is hiking its royalty fees. However, the higher rate will affect new franchisees, buyers of company-owned restaurants, relocated restaurants and other scenarios that involve the franchisor. McDonald's will also stop calling the payments "service fees," and instead use the term "royalty fees," which most franchisors favor. They pay rent, monthly royalty fees and other charges, such as annual fees toward the company's mobile app, in order to operate as part of McDonald's system.

Persons: Joe Erlinger, McDonald's, Erlinger, Ian Borden Organizations: CNBC, Kalinowski Equity Research Locations: McDonald's, California, U.S

☆ McDonald's raises royalty rates for some franchise operators
▼ + stars: | 2023-09-22 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +3 min

New York CNN —For the first time in about 30 years, McDonald’s is increasing its royalty fee for new franchise operators in the US and Canada. Franchises are a key part of McDonald’s business, with roughly 95% of all McDonald’s locations operated by franchise operators. Operators pay a royalty rate to use McDonald’s brand and for access to its expertise. In 2018, McDonald’s franchise operators formed their first-ever advocacy group, the National Owners Association. And while other chains struggle to bring more customers into restaurant locations, McDonald’s is reporting growth in US traffic.

Persons: ”, Justin Sullivan, Joe Erlinger, We’re, Chris Kempczinski, Ian Borden Organizations: New, New York CNN, Getty Images Company, CNN, National Owners Association Locations: New York, Canada

The Chicago-based fast food chain plans to eliminate self-service soda machines at its U.S. restaurants by 2032, McDonald's confirmed this week. For years, McDonald's customers have used the machines to fill and refill their beverages without additional trips to a cashier. Behind-the-counter soda machines already exist at some other fast food chains — and a handful of McDonald's locations across the country have also begun the transition. McDonald's digital sales — made up of app, delivery and kiosk purchases — accounted for almost 40% of systemwide sales for the second quarter of 2023. The price increases that have helped fuel McDonald’s sales in recent quarters will moderate as inflation comes down, Chief Financial Officer Ian Borden said during July's Q2 earnings call.

Persons: McDonald's, Uber, Ian Borden Organizations: Associated Press, McDonald's, The State, Revenue Locations: Coke, Chicago, U.S, McDonald's USA, Illinois

☆ McDonald's customers are ordering less and switching to value menu items to save money
▼ + stars: | 2023-07-28 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

McDonald's customers are "trading down" to its value items and buying less, execs told investors. Some diners also appear to be switching to McDonald's from full-service restaurants, CEO Chris Kempczinski said. Customers are "trading down" from premium and higher-priced items to core and value items instead, CFO Ian Borden told investors on Thursday, without giving specific examples. Kempczinski told investors in April that fewer customers were ordering fries with their burgers as they cut back on spending. Some households on incomes under $100,000 also appear to be switching to McDonald's from full-service restaurants, Kempczinski said Thursday.

Persons: execs, Chris Kempczinski, Kempczinski, Ian Borden, Borden, Neil Saunders, McDonald's, Grimace Organizations: Service Locations: Wall, Silicon, McDonald's

☆ McDonald's and Chick-fil-A are tracking your location to make sure your fries are perfectly crispy when you come collect your mobile order
▼ + stars: | 2023-05-29 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

McDonald's and Chick-fil-A are tracking the locations of customers who place mobile orders. McDonald's introduced a geofencing feature to its app in March. Restaurant Business reported that McDonald's geofencing technology alerts a restaurant when a mobile order customer is three minutes away. It includes an order-ahead lane where customers can drive up and retrieve mobile orders from a conveyer belt, dedicated parking spots for delivery drivers, and pick-up shelves where customers can collect orders. Chick-fil-A has also tested an express drive-thru lane exclusively for mobile orders, allowing them to skip the traditional drive-thru line.

☆ McDonald's says people are cutting back on ordering fries with their burgers as consumers tighten their budgets
▼ + stars: | 2023-04-26 | by ( Grace Dean | ) www.businessinsider.com time to read: +3 min

Fewer McDonald's customers are ordering fries with their burgers. The growth in the number of customers ordering delivery is also slowing down, execs said Tuesday. McDonald's is still a "beneficiary" of the slowing economy as people switch to the chain to save money, its CFO said. "We are seeing a slight decrease in units per transaction," CEO Chris Kempczinski told investors. McDonald's told investors last summer that some diners, "particularly lower-income customers," have been trading down to value offerings and ordering fewer combo meals.

☆ McDonald's earnings beat estimates as U.S. traffic grows despite price hikes
▼ + stars: | 2023-04-25 | by ( Amelia Lucas | ) www.cnbc.com time to read: +4 min

All three of its divisions reported same-store sales growth of 12.6%. In its home market, higher menu prices and increased traffic fueled same-store sales growth, which topped StreetAccount estimates of 7.9%. McDonald's U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic as menu prices rise. Its international operated markets, which include the United Kingdom, France, Germany and Australia, beat StreetAccount estimates of 8.5% same-store sales growth. Its international developmental licensed markets segment, which includes China and Japan, topped same-store sales expectations of 10.5%.

☆ How McDonald’s won over China
▼ + stars: | 2023-02-28 | by ( Shawn Baldwin | ) www.cnbc.com time to read: 1 min

McDonald's is one of the world's largest restaurant chains, drawing 60 million customers daily at more than 40,000 locations worldwide. The fast food giant plans to open 1,900 new restaurants this year, almost half of them in China, McDonald's CFO Ian Borden told analysts on an earnings call in January. McDonald's got its start in China in the early '90s. Today, the chain has more than 4,500 restaurants in mainland China and Hong Kong with considerable room for growth. Even still, China is McDonald's second-largest market by store count, behind the U.S.

☆ McDonald's tops profit estimates, warns short-term inflation to persist
▼ + stars: | 2023-01-31 | by ( Hilary Russ | ) www.reuters.com time to read: +3 min

[1/3] McDonald's Crispy Chicken Sandwiches and fries are pictured in New York, U.S. March 30, 2021. REUTERS/Hilary RussJan 31 (Reuters) - McDonald's Corp (MCD.N) on Tuesday beat Wall Street estimates for quarterly profit on higher menu prices, even as it warned short-term inflationary pressures would persist in 2023. McDonald's benefited from higher menu prices, increased restaurant traffic and sales in the UK, Germany and France rose despite fears of a recession in Europe. Visits to some other fast-food chains started to fall last summer as they hiked menu prices, he said. McDonald's U.S. comparable sales rose 10.3% in the quarter ended Dec. 31.

☆ McDonald's sales surge, warns short-term inflation to persist
▼ + stars: | 2023-01-31 | by ( Hilary Russ | ) www.reuters.com time to read: +3 min

[1/2] A huge advertisement for a branch of fast-food giant McDonald's is seen on the outskirts of Berlin, Germany, April 22, 2016. The burger chain's global same-store sales increased 12.6% in the fourth quarter ended Dec. 31, compared with estimates for an 8.6% rise, according to IBES data from Refinitiv. That is compared to a 0.6% decline for fast food overall in the fourth quarter over the previous year. Visits to some other fast-food chains started to fall last summer as they hiked menu prices, he said. McDonald's U.S. comparable sales rose 10.3% in the quarter.

☆ McDonald's beats profit estimates, warns short-term inflation to persist
▼ + stars: | 2023-01-31 | by ( Hilary Russ | ) www.reuters.com time to read: +3 min

REUTERS/Hilary RussJan 31 (Reuters) - McDonald's Corp (MCD.N) on Tuesday beat Wall Street estimates for quarterly profit on higher menu prices, even as it warned short-term inflationary pressures would persist in 2023. McDonald's benefited from higher menu prices, increased restaurant traffic and sales in the UK, Germany and France rose despite fears of a recession in Europe. Even so, traffic rose 5% for full-year 2022 as McDonald's meals remained less expensive than many competitors, drawing low-income consumers. Visits to some other fast-food chains started to fall last summer as they hiked menu prices, he said. McDonald's U.S. comparable sales rose 10.3% in the quarter ended Dec. 31.

☆ McDonald’s is giving people the chance to win free food for life
▼ + stars: | 2022-11-29 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +2 min

New York CNN Business —For the holidays, McDonald’s is giving away free meals for life. Beginning December 5, every order completed in the McDonald’s app for at least $1 will enter customers into a contest to win a McGold Card. Three winners will get a special card that earns them free McDonald’s for life. The McGold Card has been around for years, with some heavy hitters reportedly holding them, including Warren Buffett, Bill Gates and actor Rob Lowe. “Our fans have been fascinated by the lore of the McGold Card and if it really exists.

☆ CFOs Detail Plans to Manage Inflation, Shifts in Consumer Demand
▼ + stars: | 2022-10-28 | by ( Kristin Broughton | ) www.wsj.com time to read: +7 min

Ian Borden, McDonald’s CFO Photo: McDonald'sThere are really a couple of drivers for this year that resulted in that adjusted outlook. I think what I would say, coming into the role, is certainly it’s an area that I’m going to be focused on. But so far, we’ve seen [a] continued strong impact on our recommendations products from advancing developments in our AI work. We do expect that to be considerably higher than what we’ve seen in the past, reflecting the inflation that we’re dealing with across the business. When we talk about the impact of inflation, it is not just a domestic impact, it’s international as well.

☆ As prices soar, consumers turn to McDonald’s
▼ + stars: | 2022-10-27 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +4 min

New York CNN Business —Inflation is relentlessly high and food prices in particular are soaring. In the third quarter, McDonald’s US prices were up about 10% year-over-year on average. McDonald's prices were up about 10% year-over-year in the third quarter. Some might also be trading down to McDonald’s from more expensive chains or restaurants as menu prices increase at a slower clip than prices in grocery stores. “We feel very good about … McDonald’s value proposition,” said CEO Chris Kempczinski during the call.

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