Latest news with #SnackWrap
Japan Today
06-08-2025
- Business
- Japan Today
McDonald's sees U.S. rebound but says low-income diners remain stressed
McDonald's said it is working with franchisees to implement promotions throughout its US network McDonald's profits rose in the second quarter behind a rebound in U.S. sales but executives said Wednesday that low-income consumers remained under economic stress. The fast-food chain notched a 2.5-percent rise in U.S. comparable sales after the same benchmark shrunk by 3.6 percent in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the U.S. consumer base as "bifurcated," with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said "real incomes are down" for this population despite higher wages. "There's a lot of anxiety and unease with that low-income consumer," Kempczinski said. "I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation." People are either skipping meals like breakfast, "or they're trading down, either within our menu or they're trading down to eating at home," he said. In terms of the results, McDonald's reported an 11-percent rise in profits to $2.3 billion, while revenues increased five percent to $6.7 billion. Global comparable sales increased 3.8 percent. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the $5 Meal Deal and the Snack Wrap for $2.99. However, executives said they were still working to implement the offering throughout its network. U.S. franchisees have sometimes resisted such promotions because of profit concerns. "Too often" consumers may drive up to a McDonald's "and you're seeing combo meals that could be priced over $10 and that absolutely is shaping value a negative way," Kempczinski said. "We've got to get that fixed," he said, adding that the company is holding "active and productive" conversations with franchisees. © 2025 AFP
CNN
06-08-2025
- Business
- CNN
McDonald's launched its biggest marketing campaign in history. It worked
McDonald's sales have finally turned a corner, thanks in part to 'A Minecraft Movie' meal deal that marked the chain's largest marketing campaign ever. 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.
CBS News
24-07-2025
- Business
- CBS News
McDonald's will test 10 CosMc's-inspired drinks at restaurants
McDonald's plans to test 10 new drinks in hundreds of U.S. stores as the restaurant chain seeks to quench Gen Z customers' taste for bold drink combinations. "We're seeing real momentum in beverages, with more people — especially our Gen Z fans — turning to cold, flavorful drinks as a go-to treat," Alyssa Buetikofer, McDonald's chief customer experience and marketing officer, said in a statement. "It's a great opportunity for us to meet our U.S. customers' evolving tastes and show up in new moments, like afternoon refreshment or snack breaks." The new drink lineup is inspired by what the fast-food giant learned through its failed coffee and drinks chain, called CosMc's, that McDonald's launched in 2023. The company shuttered the chain in May. Instead of operating standalone stores, McDonald's will bring a lineup of at least five different CosMc's-branded beverages to 500 McDonald's restaurants across the U.S. The drinks, which McDonald's describes as "cold coffees, fruity refreshers, crafted sodas and energizing sips," will first be available at restaurants in Wisconsin, Colorado and the surrounding areas, according to the company. Tew drinks include: The venture aims to expand and capitalize on growing customer demand for flavorful drinks. "We're not just adding drinks to the menu – we're advancing our global beverage platform that fits naturally with how people already enjoy McDonald's," Charlie Newberger, McDonald's beverage category lead, said in a statement. "We've got the structure, the tools and the team to move fast and scale what works." The drinks will be available in stores starting Sept. 2, according to the company. McDonald's recently re-introduced its popular Snack Wrap and Spicy Egg McMuffin sandwich as it seeks to boost sales and lure inflation-weary customers back to its stores. Same-store sales dropped 3.6% in the first quarter, marking the company's largest drop since the COVID-19 pandemic, when the the chain was forced to close stores nationwide.
CBS News
24-07-2025
- Business
- CBS News
McDonald's will bring 10 CosMc's inspired drinks to restaurants
McDonald's said it is testing 10 new drinks to hundreds of U.S. stores as it enters the next stage of its "beverage journey." The burger chain said it's responding to Gen Z customers' preferences for bold drink combinations. "We're seeing real momentum in beverages, with more people — especially our Gen Z fans — turning to cold, flavorful drinks as a go-to treat," Alyssa Buetikofer, McDonald's chief customer experience and marketing officer, said in a statement. "It's a great opportunity for us to meet our U.S. customers' evolving tastes and show up in new moments, like afternoon refreshment or snack breaks." The new drink lineup is inspired by lessons the fast-food giant learned through its failed venture called CosMc's, a chain launched in 2023 that focused on coffee and other drinks, with offerings similar to Starbucks drinks. The company shuttered the chain in May. Instead of operating standalone stores, McDonald's will bring a lineup of at least five different CosMc's-branded beverages to 500 McDonald's restaurants across the U.S. The drinks, which McDonald's describes as "cold coffees, fruity refreshers, crafted sodas, and energizing sips," will first be available at restaurants in Wisconsin, Colorado and the surrounding areas, according to the company. Here are some of the new drink offerings: The venture aims to expand and capitalize on growing customer demand for flavorful drinks. "We're not just adding drinks to the menu – we're advancing our global beverage platform that fits naturally with how people already enjoy McDonald's," Charlie Newberger, McDonald's beverage category lead said in a statement Thursday. "We've got the structure, the tools and the team to move fast and scale what works. This first test in the U.S. market is a big step in our global direction." The drinks will be available in stores starting Sept. 2, according to the company. McDonald's recently re-introduced its popular Snack Wrap and Spicy Egg McMuffin sandwich as it seeks to boost sales and lure inflation-weary customers back to its stores. Same-store sales dropped 3.6% in the first quarter, marking the company's largest drop since the COVID-19 pandemic, when the the chain was forced to close stores nationwide.
NBC News
24-07-2025
- Business
- NBC News
McDonald's revamped Snack Wraps are winning over customers
Early data suggests the return of McDonald's Snack Wraps is winning over customers. After a nearly decadelong hiatus, the burger chain brought back the popular menu item earlier this month. So far, it looks like a hit. From July 10 to July 12, the first three days of the launch, McDonald's locations saw traffic jump by double digits each day compared to the year-to-date daily average, according to data. Evercore ISI estimates U.S. same-store sales have climbed 7% so far in the third quarter, according to a research note from Thursday. Some McDonald's U.S. stores even ran out of lettuce, although the company has since resolved the temporary shortage. 'After nine years of pent up demand, fans showed up in full force to celebrate the return of the Snack Wrap. We've been blown away by the response, from packed restaurants with lines out the door to nonstop social buzz,' McDonald's U.S. said in a statement to CNBC regarding the temporary lettuce shortage. The success of the permanent menu addition is good news for McDonald's, which has struggled with sluggish sales in recent months. In the first quarter, the company reported its largest quarterly U.S. same-store sales decline since 2020, when the Covid-19 pandemic shuttered its dining rooms. McDonald's has had some marketing wins: its $5 meal deal and a Minecraft movie tie-in. But discounts can weigh on restaurant profitability, and limited-time promotions only provide a temporary boost to traffic. Most importantly for McDonald's, customers seem to enjoy the Snack Wraps, suggesting that the lift to McDonald's sales could outlast the social media buzz that fueled the initial traffic boost. A Numerator survey of more than 200 verified buyers of the McDonald's Snack Wrap found that 90% of respondents would buy the item again in the future. Those early Snack Wrap buyers are loyal McDonald's customers. Numerator found that the survey's average respondent has visited the chain 56 times so far this year. The typical McDonald's diner has only frequented one of its restaurants 25 times during the same period, according to Numerator. In addition to lettuce, shredded cheese and sauce, McDonald's revived snack wraps are made with one of the chain's McCrispy Strips, which launched nationwide in May. The wraps, which sell for $2.99 each, come in two flavors: spicy and ranch. More than two thirds of Numerator survey respondents bought just the ranch snack wrap, 20% purchased the spicy version, and 12% went for both. The company is expected to report its earnings for the second quarter on Aug. 6. The report will not include the effect of the snack wraps, which rolled out nationwide after the quarter ended.
