McDonald’s profits up in America after reintroduction of popular menu item
The revived snack boosting McDonald’s profits
- McDonald's reported stronger-than-expected third-quarter sales growth, with US same-store sales up 2.4 per cent and global sales increasing by 3.6 per cent from July to September.
- This growth was largely driven by the introduction of its new Extra Value Menu and the reintroduction of Snack Wraps, which cost $2.99 each.
- The return of Snack Wraps significantly boosted customer engagement, leading to a 15 per cent surge in US store traffic on their rerelease day.
- While some new value meals had limited impact, specific promotions, such as a 50-cent double cheeseburger for National Cheeseburger Day, proved more effective in attracting customers.
- In contrast to McDonald's success, other fast-casual chains like Chipotle and Cava reported weaker results, as consumers, particularly young Americans, are increasingly choosing to eat at home to save money.