McDonald's launched its biggest marketing campaign in history. It worked
Sales at McDonald's US locations open at least a year rose 2.5% for the quarter ending June 30, putting an end to two consecutive quarters of sinking sales. The chain credited its 'standout marketing,' which included the massive movie promotion and the launch of crispy chicken strips, for the turnaround.
McDonald's in late March released a Happy Meal for kids with themed toys and an adult meal tied with the release of the Minecraft Movie, which was released by CNN's sister company Warner Bros. Pictures and grossed nearly $1 billion worldwide.
The promotion ran in 100 markets, helping global sales at stores open at least a year rise 3.8%. Plus, total revenue jumped 5% to $6.8 billion, the company said Wednesday.
Last quarter, CEO Chris Kempczinski said that low- and middle- income customers were pulling back their spending and visits at the chain, prompting McDonald's to freshen up its menu offerings and promotions.
Kempczinski will likely share more on a call with analysts this morning.
Given the success of its new menu items and promotions, McDonald's is keeping its foot on the gas this quarter, with the upcoming release of the highly anticipated Snack Wrap. Next week, the company plans to launch of a new 'McDonaldland' meal aimed at nostalgic adults, with a mystery-flavored shake. It's also revamping its beverage options under the CosMc's banner at 500 McDonald's in September following the closure of that spinoff.
McDonald's (MCD) stock rose more than 3% in premarket trading.
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