Latest news with #SnackWraps
Miami Herald
15 hours ago
- Business
- Miami Herald
McDonald's CEO promises massive restaurant changes, improvements
McDonald's sales rebounded in the second quarter, with the chain delivering global comparable sales growth of nearly 4%. That's really good news after the chain struggled in multiple quarters. The comeback included a lot of positive numbers for McDonald's: The chain drove positive comparable guest counts globally, despite a challenging backdrop for the industry. Internationally Operated Market segment comparable store sales increased by 4%, with all markets driving positive comp sales Developmental Licensed Markets delivered comp sales growth of more than 5.5%, led by Japan and with positive comps across all States comp sales were up 2.5% in the quarter. CEO Christopher Kempczinski made it clear that while it's working on much bigger changes as part of its Accelerating the Arches program, it's also focusing on pricing. Related: McDonald's menu brings back classic characters for shake, meal "The $5 Meal Deal continues to resonate with consumers as we recently celebrated the 1-year anniversary of the program. We've also continued to see incrementality from our McValue platform which also includes our Buy One, Add One for $1 deal, which launched at the beginning of this year," he shared during the chain's second-quarter earnings call. "And of course, we're excited to welcome Snack Wraps back onto the menu after a 9-year hiatus. We launched Snack Wraps with an attractive $2.99 nationally advertised price point and early results are encouraging," he added. Pricing, however, is only a small piece of the company's evolution plan. Image source: McDonald's Fast-food chains apparently need to have somewhat cleverly-named turnaround plans. Burger King has "Reclaim the Flame," and McDonald's has "Accelerate the Arches." Kempczinski broke down the key parts of the plan during the call. "Central to our Accelerating the Arches strategy is aligning our greatest assets, our iconic brand and unmatched size and scale with the power of data and technology. It's happening in three distinct ways," he shared. Reimagining how we improve the restaurant experience Transforming how we engage our most loyal brand fans Modernizing the employee experience "Our progress to digitize the Arches is unleashing the full potential of our size and scale, all while strengthening our foundation, such as increasing the reliability of our systems," he added. More Restaurants After closing restaurants, Papa John's puts focus on pizzaBeloved sandwich chain franchisee closes in Chapter 11 bankruptcyTop-10 burgers list deals blow to McDonald's, Burger King Kempczinski did not comment on fixing the perpetually broken McFlurry machines. He did, however, share major plans for McDonald's to improve its in-store experience driven by technology. Kempczinski and McDonald's have been working on parts of "Accelerate the Arches" for nearly two years. The CEO believes the impact will be meaningful. "As I said during our investor update in late 2023, when we first introduced the restaurant, consumer and company platforms, we believe they can create a step change in our sales and margin trajectory over time. Slowly at first, with increasing speed and impact as we scale like no other brand can," he said. To make the level of change needed, McDonald's has partnered with a key technology leader. "We're excited to see this start coming to life. In our restaurant platform in partnership with Google, we're developing edge computing, which extends the cloud to our restaurants," he added. Kempczinski explained exactly what things might look like. "Edge is the digital foundation for the next generation of restaurant innovation that powers AI and Internet of Things enabled restaurants. The expected benefits are many. Increased restaurant uptime and enhanced customer and crew experience, improved food quality and cost savings opportunities. We're currently live with Edge in hundreds of U.S. restaurants and are beginning to deploy it internationally," he added. Related: McDonald's adds new rules your kids will hate The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
USA Today
3 days ago
- Business
- USA Today
McDonald's cooks up a hot summer menu with Snack Wraps, Daily Double, more
The Summer of Snack Wraps at McDonald's also has seen the fast-food giant adding limited-time items such as the Daily Double cheeseburger and Lil McDonald's Happy Meals – all to spur more visits. McDonald's is serving up a summer of new menu items, plus specials – and is loving the results. This summer, McDonald's has leaned into new and limited-time menu items, as a move to attract more customers – returnees, as well as new and lapsed ones. Spring brought offerings such as McCrispy Strips (now part of the permanent menu) and limited-time items including Squishmallows Happy Meals, 'A Minecraft Movie' Happy Meals and the Hershey's S'mores McFlurry. Since late June, McDonald's released a quintet of new menu items including a new double cheeseburger, the Daily Double (to be on the menu through 2025), and the return of Snack Wraps after a nine-year absence. Krispy Kreme's Pumpkin Spice Menu: See the doughnuts, lattes coming in August McDonald's chairman and CEO Chris Kempczinski hopes the wave of new items – along with its popular $5 Meal Deal and McValue Menu, both expected to run through the end of the year – will lead to another successful sales boost, similar to the 5% boost in revenue and 2.5% increase in same-store U.S. sales McDonald's saw from April 1-June 31. Those financial results, released Aug. 6, represent an improvement from McDonald's sluggish start in 2025, which brought a 3% revenue decline and 3.6% dip in U.S. sales during the company's first quarter (Jan. 1-March 31). 'Compelling value, standout marketing, and menu innovation" helped drive the second quarter performance, Kempczinski said in the report. Here's what you need to know about McDonald's menu newest offerings. McDonald's menu: Snack Wraps return The Snack Wrap, made up of one of McDonald's new all-white chicken meat McCrispy Strips, lettuce and cheese in a flour tortilla, returned to the menu July 10 (available in Ranch and Spicy flavors). The first weekend it hit the menu, Snack Wraps brought in diehard McDonald's fans – many who had already visited the restaurant 56 times in 2025, more than two times the average McDonald's customer – according to a July 14 survey of 206 verified receipt-based early buyers of McDonald's Snack Wraps conducted by market research firm Numerator. As for Snack Wraps, 90% of buyers would be willing to buy them again, according to the survey. "For McDonald's, (limited time offerings) function as much a loyalty driver as they do an acquisition tool," Mitch Louch, principal strategist at Numerator, told USA TODAY. The $2.99 à la carte price is expected to remain throughout 2025, Kempczinski said Aug. 6 during a conference call with investment analysts, according to a transcript from S&P Global Market Intelligence. You can also order a combo meal with two Snack Wraps, a medium fry and a drink of choice. McDonald's dessert menu gets Blueberry & Crème Pie The Blueberry & Crème Pie, which hit the menu on June 27, is served warm and described as "a twist on the classic McDonald's sleeved pie," according to the fast food chain's online menu spotter. The pie will remain available nationwide through most of the summer (expected departure date is Sept. 1). McDonald's menu addition: The Daily Double At the end of June, McDonald's made the Daily Double cheeseburger available nationwide. Previously only available in limited markets the burger will be available nationally through 2025, the company says. The burger, made with two beef patties, a slice of American cheese plus shredded lettuce, slivered onions, mayo and two tomato slices, is a bit different from the McDouble. The McDouble cheeseburger also has two patties and just one slice of cheese, plus pickles, diced onions, ketchup and mustard – no lettuce, tomato or mayo – and can be ordered as a Bacon McDouble, too.. As of July 22, you could order a Daily Double McValue Meal Deal ($6 or $7; pricing depends on your restaurant) with a 4-piece order of Chicken McNuggets, small fries, and a small soft drink. Spicy McMuffin breakfast sandwiches McDonald's added three spicy breakfast menu items as of July 8: the Spicy McMuffin, Spicy Sausage McMuffin, and Spicy Sausage McMuffin with Egg. The spicier take on the dish is part of the fast food chain's 50th anniversary celebrations for the McMuffin. Hershey's S'mores McFlurry still on McDonald's menu This limited-time dessert offering, which arrived on the menu June 10, blends pieces of Hershey's Milk Chocolate, graham crackers, and marshmallows with McDonald's vanilla soft serve. Lil McDonald's Happy Meals: also still on McDonald's menu Lil McDonald's Happy Meals remain available for a limited time, while supplies last, following their July 1 arrival. Among the 21 toys are miniature versions of food plates, ordering kiosks, delivery trucks, checkout registers, french fries, soft drink machines, and restaurant seating booths. Squishmallows Happy Meals made a return A month ahead of summer, McDonald's brought back Squishmallows Happy Meals, which come with one of a dozen plush toys, for the first time since December 2023. The meals became available May 13 and have left the menu. A sign of their popularity? Individual toys are still priced as high as $50 on eBay and complete sets of the Squishmallow toys are priced at about $70. New Happy Meals coming soon to McDonald's: McDonaldLand Meals, as soon as Aug. 12, with collectible tins filled with postcards, stickers and more items paying tribute to a McDonald's fantasy world introduced in 1971, and Teenage Mutant Ninja Turtles x Hello Kitty and Friends Happy Meals, each with the figurine of a mashed-up Turtles and Kitty character (starting Aug. 12). Another summertime move by McDonald's: a majority of U.S. locations are staying open until midnight or later throughout the summer, the company announced in May. While McDonald's is pleased with the spring and early summer, Kempczinski said during the Aug. 6 earnings call he wasn't ready to claim a victory in the current three-month period, saying "we remain cautious about the overall near-term health of the U.S. consumer." Contributing: Greta Cross, Gabe Hauari, Jonathan Limehouse, and Anthony Robledo, USA TODAY. Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day
Daily Mail
3 days ago
- Business
- Daily Mail
Nostalgic McDonaldland meal excites fans but frustrates workers
But staff are already complaining it could overwhelm them — especially because the drink relies on soft-serve ice cream, a notorious pain point at many locations. McDonald's ice cream machines have long been plagued by breakdowns , with only the manufacturer allowed to repair them — often leaving them out of service for days. But staff say launches like this — and the recent return of Snack Wraps — just pile on pressure, requiring more ingredients, cooler space, and preparation time. The Snack Wrap comeback, though celebrated by customers, quickly turned into a nightmare behind the scenes. Employees said the rollout was chaotic, with stores overwhelmed by demand, shortages of lettuce, and lacking proper training. 'Wtf is McDonald's thinking??? I mean for real what are they thinking? They bring back the snack wraps and the next month, they throw a new meal at us too?,' a Reddit user wrote . 'This job is actually going to kill me at this rate.' 'Seriously!?! One more thing to shove in my already overloaded tiny walk-in cooler!,' another employee responded. McDonald's is on the verge of a major comeback — even after a recent sales slump and a humiliating loss to Starbucks in the battle for America's favorite fast food chain. Fans have cheered the company's decision to extend operating hours at nearly every US location. That move comes as McDonald's works toward hiring 375,000 employees this summer and aims to open 900 new restaurants by the end of 2027. They are all part of a broader push to win back customers after sales fell in both the final quarter of last year and the first quarter of this year. Now, the Golden Arches is rebounding. It wrapped up its second quarter — covering April through June — with revenue growth across nearly all categories, topping Wall Street expectations. Global sales rose 3.8 percent, including a 2.5 percent jump in the US, while profits climbed 6 percent. Now, the Golden Arches is rebounding. It wrapped up its second quarter — covering April through June — with revenue growth across nearly all categories, topping Wall Street expectations. Global sales rose 3.8 percent, including a 2.5 percent jump in the US, while profits climbed 6 percent. CEO Chris Kempczinski credited the gains to 'compelling value, standout marketing, and menu innovation,' highlighting recent hits like the $5 meal deal and Minecraft Movie Meal. Still, executives say winning back low-income customers remains a key priority, since they typically visit more often than wealthier diners. McDonald's is working with franchisees to make core menu items more affordable. The company expects even stronger results in the second half of the year, particularly as it moves past last year's E. coli-related setbacks. Factors in the financial gain include success from its Minecraft Movie Meal and McCrispy Chicken Strips . He added that new technology will also help in elevating McDonald's experiences for customers and crew members — including AI drive-thrus and addition AI tools for managers .
NBC News
4 days ago
- Business
- NBC News
McDonald's sees U.S. sales rebound, but concerns about low-income consumers linger
McDonald's on Wednesday reported quarterly earnings and revenue that topped analysts' expectations as buzzy promotions helped its U.S. restaurants rebound. Despite the chain's improved performance this quarter, executives are still worried about the economic health of the low-income consumer. McDonald's is working with its U.S. franchisees on ways to make its core menu items more affordable, beyond the $5 meal deal it rolled out last summer and the newer Daily Double burger promotion. 'Reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently than middle- and high-income consumers,' CEO Chris Kempczinski told analysts on the company's earnings conference call. 'This bifurcated consumer base is why we remain cautious about the overall near-term health of the U.S. consumer.' Executives said they anticipate that McDonald's results will be stronger in the second half of the year, particularly as the chain faces easier comparisons in the fourth quarter to the fallout from last year's E. coil outbreak. Shares of the company rose more than 2% in morning trading. Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Earnings per share: $3.19 adjusted vs. $3.15 expected Revenue: $6.84 billion vs. $6.7 billion expected The fast-food giant reported second-quarter net income of $2.25 billion, or $3.14 per share, up from $2.02 billion, or $2.80 per share, a year earlier. Excluding restructuring charges and other items, McDonald's earned $3.19 per share. Revenue rose 5% to $6.84 billion. Kempczinski in the company's earnings release credited the chain's value, marketing and new menu items for the 6% increase in system sales during the quarter. Same-store sales, a metric that only tracks the performance of restaurants that have been open at least a year, increased 3.8%, the chain's biggest jump in nearly two years. McDonald's U.S. restaurants saw same-store sales growth of 2.5%, reversing two straight quarters of domestic declines. Kempczinski said the burger chain outperformed its rivals by both same-store sales and comparable traffic. 'Certainly, overall [quick-service restaurant] traffic in the U.S. remained challenging, as visits across the industry by low-income consumers once again declined by double digits versus the prior year period,' he said on the call. This quarter, the burger chain's U.S. sales received a boost from a tie-in meal with the 'Minecraft' movie and the launch of the McCrispy Chicken Strips. Shortly after the quarter ended, Snack Wraps returned to menus for the first time in nine years; executives said that early results are 'encouraging,' and franchisees have voted to maintain the $2.99 promotional price through the end of the year. Outside the U.S., demand for its Big Macs and french fries was even stronger. 'I would just note, also on our international side, it's not as competitive a market as it is in the U.S.,' Kempczinski said. 'I think it's a little bit easier for us to stand out and represent good value in international.' The chain's international developmental licensed markets division, which includes Japan and China, reported same-store sales growth of 5.6%. Its international operated markets segment saw same-store sales growth of 4%, thanks to gains in countries like the United Kingdom, Australia and Canada. Executives said McDonald's value and affordability scores from consumers have improved in key markets.
Business Insider
5 days ago
- Business
- Business Insider
Why the $2.99 Snack Wrap is part of McDonald's new secret sauce for success
McDonald's has emphasized the importance of bringing back a cheap fan favorite, as the fast-food industry tries to get low-income consumers back through the door. CEO and chairman Chris Kempczinski told investors Wednesday that "re-engaging the low-income consumer is critical. The restaurant giant reintroduced $2.99 Snack Wraps last month after a nine-year hiatus. Kempczinski said on the call for its second-quarter earnings that visits from "low-income" consumers had declined across the fast-food industry. These consumers "typically visit our restaurants more frequently than middle and high-income consumers," he added. The chief financial officer, Ian Borden, told the call the company had been "encouraged by the positive consumer response so far" to Snack Wraps. This "comes from pairing the right product with the right value proposition," he added. Kempczinski added that the company's franchisees "also recognize the importance of the $2.99 price point" and had voted to extend it through the rest of the year. The company reported diluted earnings per share of $3.14, in line with Wall Street expectations. It announced revenue of $6.8 billion, beating forecasts of $6.71 billion. Shares in McDonald's were trading around 2% higher as of 11 a.m. ET Wednesday. Global same-store sales jumped 3.8% year-on-year, markedly higher than analysts' estimates of 2.49%. On the call, Borden also said it recently updated its McValue menu, which now offers three meal deals for $5. Yum! Brands — the parent company of Taco Bell, KFC, and Pizza Hut — reported an average rise of 2% in same-store sales on Tuesday. Data from location intelligence and foot traffic data software firm found that McDonald's outperformed its competitors in foot traffic in the second quarter. The firm found that McDonald's visits were up 0.8% for the quarter, even as quick-service restaurants as a whole saw visits fall 0.7%. In late July, The Wall Street Journal reported that McDonald's would test-launch its line of "Dirty Sodas." The offerings, inspired by its now-defunct CosMc chain, will include add-ins like dried fruit and flavored syrups and will be available in hundreds of stores nationwide beginning in September. Business Insider previously reported that the recent spate of new drink offerings from McDonald's and other restaurants like Taco Bell, KFC, and Starbucks has been spurred on by Gen Z's love of customizable, non-alcoholic beverages.
