January 29, 2018

$1,2,3 Menu Should Boost SSS

Analyst David Palmer at RBC Capital knows more than McDonald's Operators -

"Contrary to franchisee commentary, RBC Capital Markets think McDonald’s pricing 
strategy is maintaining average check totals.

The ‘barbell’ approach of $1 any size soft drink and premium priced Signature Crafted sandwiches has recently been helping the chain deliver traffic-driven growth, but with a 
stable check,” analysts wrote in a note published Monday."

McDonald’s earnings: ‘$1 $2 $3 Dollar Menu’ should give same-store sales a boost - MarketWatch
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5 comments:

Anonymous said...

From the article: “[R]etailers, restaurants, and brands providing unparalleled value to the consumer are seeing acceleration in top-line versus peers,” wrote Cowen analysts in a January note. "

TOP LINE acceleration ! BOTTOM LINE Loses !

Anonymous said...

Not seeing any addtional traffic but my average check is down about .50 McDonald's marketing does not know how to market "value" they just know how to market price dumbest thing you can do. OPNAD reps should be asking what is the value message not price points.

Keep electing the same OPNAD reps we'll keep having the same marketing programs $1 drinks & $1 chicken sandwiches same thing we were doing 15 years ago. Modern & Progressive.

Anonymous said...

I do believe our sales will respond to recent changes but the increases won’t result in
added cash flow. If we don’t add cash flow then nothing else makes any difference. I
am convinced it’s better for operators to run our restaurants without any discounts. Our
sales and transactions do take a hit but we make more money. Furthermore, our
operations are more consistent.

Anonymous said...

Id rather have 400,000 PROFITABLE TRANSACTIONS than 500,000 UNPROFITABLE ones.

Modern & Progressive

Anonymous said...

123DM a flop, now OPNAD wants to add 2 additional breakfast sandwiches draining additional cash flow during a time of high reinvestment.

People voting this stuff have no business accumen, as corporate no longer has any historical MCD accumen. SMH