McDonald’s admits that getting rid of this beloved menu offer was a ‘bad trade,’ as new $3 value menu disappoints
A new $3 value menu didn’t deliver as much as hoped for—but McDonald’s still posted a profitable quarter. The fast-food giant reported its latest earnings on Tuesday morning, which showed that global sales increased 5% to $37 billion, and comparable sales in the United States were up 0.8%. That’s notable, considering that restaurants have been taking it on the chin as diners contend with high…
McDonald's has admitted that the removal of a beloved menu offer was a "bad trade," as their new $3 value menu has failed to meet expectations. Despite a 5% increase in global sales to $37 billion and a 0.8% rise in U.S. comparable sales, McDonald's acknowledged that the McValue menu underperformed. The chain initially rolled out the menu in April, featuring items priced at less than $3, but company leaders stated that only around 60% to 65% of their restaurants were effectively executing the pricing architecture.
This decision to replace the popular "buy one, get one for $1" offer, introduced in 2019, proved unsuccessful, with CEO and chairman Chris Kempczinski declaring it a "bad trade." The earnings results revealed that two-thirds of their miss in the quarter was due to this poor decision. Following the release, McDonald's stock rose 1.75% by midday Tuesday.
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Also reported by 1 other outlet
- McDonald's is rethinking its value menu. We want your take. businessinsider.com
