McDonald's closing 3 CosMc's locations after a year but plans to open 2 new ones in Texas. CosMc's is a small-format spinoff featuring a limited menu of unique drinks and snacks. Initial success reported, but larger locations underperform. New openings expected in 2025.
https://eu.usatoday.com/story/money/food/2025/01/13/cosmcs-mcdonalds-closing/77679057007/
McDonald's stock underperformed the S&P 500 in 5 of the last 6 years, struggling with a disappointing 2024. Despite offering stability and dividends, growth prospects appear limited, with recent sales declines noted. Current valuation seems high for anticipated challenges. While McDonald's can provide steady dividend income, expectations for significant growth in 2025 may be unrealistic. Investors may consider other opportunities, as McDonald's isn't among top recommendations for strong future returns.
McDonald's SWOT analysis reveals strong stock performance amid challenges. As of Jan 2025, stock valued at $282.31, market cap at $202.3 billion. Key strategies include menu innovations like $5 Meal Deals, digital engagement with 37M loyalty members, and reasonable EPS growth forecast. Risks involve recent food safety issues and macroeconomic pressures, particularly in international markets. Future growth hinges on digital initiatives and expansion in emerging markets. Analysts project stock targets between $300-$345. Overall, robust fundamentals despite growing competition and shifting consumer preferences.
Fast food chains use tactics like “charm pricing” and the “left-digit effect” to increase spending, making items appear cheaper (e.g., $5.99 feels like $5). Despite rising food costs, customers often leave with higher bills. Mobile apps can help save money, sometimes up to 50%, even though they utilize similar pricing strategies.
McDonald's launched a new McValue menu in the US, featuring deals like Buy-One-Add-One-For-$1 and $5 Meal Deal, along with app-exclusive promotions. Franchisees are offering localized discounts, and actor John Cena promotes its value. McDonald's partners with 16 brands for $3 million in promotions to celebrate the launch.
https://finance.yahoo.com/news/mcdonald-launches-us-mcvalue-menu-143349980.html
McDonald's new clear straws are causing customer dissatisfaction, with complaints about their flimsy structure and effects on beverage taste. Former corporate chef Mike Haracz noted that the straws are less effective at delivering the optimal taste experience, impacting how drinks are perceived. Some customers prefer the previous iconic straws, while others highlight potential issues with paper straws used in other countries.
https://www.mensjournal.com/news/mcdonalds-new-straws-beverages-taste
McDonald's is relaunching its Saver Menu with a new campaign titled “Actually Get Your Money’s Worth,” which emphasizes affordable options amid rising costs. The campaign, featuring comedic scenarios, aims to highlight the value of the Saver Menu, including the introduction of the Chilli Double Cheeseburger. Adverts will run across various media, with a focus on digital and outdoor platforms, aligning with popular UK shows. The campaign addresses consumers' demand for value for money in a relatable and humorous way.
https://www.lbbonline.com/news/mcdonalds-saver-menu-is-the-true-winner-in-expensive-scenarios
McDonald's Japan launches its first AI-generated ad, collaborating with LumaLabsAI and influencer Kaku Drop, but public reactions are mixed. While some praise the innovative approach, others find elements unsettling, particularly a scene with a model's six-fingered hand. Critics express discomfort with AI-generated visuals, contrasting McDonald's campaign with others that have avoided backlash. Despite anticipated criticism, the ad's reception highlights challenges in AI advertising, as brands navigate balancing innovation and consumer acceptance.
QSR 50 2024: Top 50 Fast-Food Chains Ranked by Sales
The list includes sales data from March to May 2024. Entries marked with * denote estimates. Rankings are based on U.S. system-wide sales.
https://www.qsrmagazine.com/story/top-50-fast-food-chains-ranked-2024/
McDonald's is removing IBM's AI technology from over 100 drive-thrus by July 26, 2024, while planning to continue exploring AI ordering solutions with other partners. The AI initially faced inaccuracies but succeeded in upselling. McDonald's aims to enhance drive-thru efficiency and expand its global presence to 50,000 locations by 2027.
https://www.yahoo.com/tech/mcdonalds-removing-current-ai-technology-215406276.html
