Thursday, October 23, 2008
Dollar Menu Rescues McDonald's 3rd Quarter
McDonald's executives are thankful they didn't follow their plans to scrap the Dollar Menu from its food lineup. Providing another indication of American penny-pinching, McDonald's credited the Dollar Menu for aiding its 3rd quarter sales figures, which were 6.2 percent higher than last year. The popular section, which includes double cheeseburgers, sweet tea, the McChicken sandwich and ice cream sundaes.
Rumors circulated that the fast food leader was pressured to remove the menu last summer,due to soaring food costs, but they appeased customers and made a savvy move by keeping it . According to the Chicago Tribune, 14% of McDonald's total sales (up to May 2008) were from Double Cheeseburger, which has gained popularity with families struggling to pay the monthly bills and make their monthly mortgage payments.
Today's New York Times article quotes McDonald's Chief Executive James Skinner, who told investors
Value, which has always been important, is mission critical today. In the United States, there’s no doubt that today’s environment is challenging for consumers and restaurants.
McDonald's leaders showed smart foresight when they decided to ignore the rising food costs and keep the customer's demand as the top priority.
By Matt O'Hern at 09:24 AM | Comments (2)