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McDonald’s Wants to Make You Better Burgers
By David Oliver , Associate Editor, Social Media | March 2, 2017, at 11:52 a.m.
A plan by McDonald’s Corporation (ticker: MCD) to lure “hundreds of millions” of customers back will include bolstering its burger quality, digital capabilities and delivery services, reports USA Today.

Consumers can expect to see new menu items like “upscale” burgers and chicken sandwiches, self-service kiosks and table service at certain restaurants, mobile ordering and delivery in the U.S., according to CNBC. Company executives laid out these initiatives to investors Wednesday.

The changes come as the food industry faces increasing competition and consumer demands for healthier options and convenience. In addition, the company’s individual turnaround plan, which includes all-day breakfast and a cage-free egg pledge, hasn’t materialized.

The fast food chain has lost “hundreds of millions” of core customers, according to senior vice president for corporate strategy and business development Lucy Brady.

“Our historical advantages of quality, convenience and value didn’t keep pace. … We’re making meaningful improvement in our food, particularly our burger and chicken offerings,” Brady says.

The restaurant’s digital-driven stores – dubbed the “experience of the future” – will arrive in approximately 650 restaurants in 2017, adding up to 2,500 locations in total.

“Creating alternatives for customization, delivery, payment and ordering processes provides challenges but they are necessary to adapt to the evolving consumer foodservice experience,” the president of Technomic Darren Tristano tells CNBC.

And as Bloomberg Gadfly’s Shelly Banjo points out, “signs [McDonald’s is] willing to invest in catching up to digital pioneers such as Domino’s (DPZ) and Starbucks (SBUX) bodes well for its future. In some cases, it’s good to follow the pack.”

McDonald’s stock price ticked up 1.1 percent on the day Wednesday after its shares were halted on the company’s investor update.

Copyright US News & World Report (No copyright infringement is intended.)


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