McDonald’s Sticks to Burgers After Innovation Corroded Its Sales
McDonald’s (NYSE:MCD) knows it has a lot of ground to cover, but that’s why the chain is going back to basics and focusing on what it knows. Chief Financial Officer Pete Bensen explained the chain’s latest strategy at a Bank of America Merrill Lynch conference in New York on Tuesday, and his assertion that McDonald’s is now refocusing on its core business and promoting its breakfast menu led the company’s shares to rise more than 3 percent that day. As of 11:30 a.m. Eastern Wednesday, the stock sat down 0.19 percent at $98.59.
McDonald’s has suffered quarter after quarter of disappointing U.S. sales losses, and many analysts attribute those difficulties to the chain overcomplicating its menu and rolling out items that the fast-food giant isn’t known for. Fish McBites, McWraps, Mighty Wings? That’s doesn’t sound like the Big Mac-focused McDonald’s that customers have known and loved, and that’s why some believe the chain suffered a 0.2 percent drop in U.S. same-store sales this year.
Now, McDonald’s is preparing to roll out its latest menu item, but this time, it’s an offering that the company has a knack for: burgers. Starting this week, the Bacon Clubhouse will be available in beef or chicken, and Bloomberg reports that it is the first burger besides the Big Mac to be topped with special sauce. It is also served on an “artisan roll.”