June 1, 2013

McDonald's CEO Presents at the Sanford Bernstein 2013 Strategic Decisions Conference

Presentation Transcript - Seeking Alpha

Can a McDonald's Operator help us understand this McSpeak? 

In his prepared remarks Don Thompson states, 

"it’s important to note that the dollar menu continues to represent about
13% to 14% of our overall sales."

But in response to a later question he says,

"three out of four customers will use that $1 menu in some form or fashion,
whether it’s adding on a product to an extra value meal or making up their
own meal out of it. That’s about 46% of the people to you that actually
make up a meal. So we’ve got to make sure that we have a good balance
of both of those."

I'm not sure how that "three out of four customers" and the 46% relate 
to each each other but in any case how can the usage of the Dollar Menu
be that high and still only represent "13% to 14% of overall sales"?
.

3 comments:

Richard Adams said...

When reading these transcripts keep in mind that they are done very quickly and published soon after the conference call. There is little editing and the person typing rarely understands the corporate vernacular.

But, the price is right.

Anonymous said...

Worst case scenario again -national discounting on top of Co/op discounting, on top of LSM discounting. Then add in oupons to try and build sales. Huge promotionaal cost impact

Anonymous said...

he isn't including $1.00 drinks in those lower numbers, probably.