McDonald’s to Push Value Offers in Response to Sluggish Sales

Last week, McDonald’s revealed its second-quarter earnings, and the numbers were not encouraging for the legacy brand. Total revenue dropped 12 percent compared to a year ago, including a $700 million loss in the quarter. Same-store sales grew by 2.6 percent, falling short of the three-percent mark expected for stores open longer than a year.

Now, CEO Steve Easterbrook has detailed how the franchise will attempt to bounce back from those losses in Q3. According to an article in Nation’s Restaurant News, McDonald’s will be leaning heavily on value offers to attract more customers in the second half of the year.

In a conference call with reporters, McDonald’s said its franchisees support the strategy, but an operator survey conducted by Kalinowski Equity Research suggests not all owners are optimistic about offering further discounts.

“We’re worn out on the discounting. It no longer works,” said one operator in the survey.

Read the full article at nrn.com.