Photo by Yusuf Evli on Unsplash
McDonald’s Promises Bigger Burgers Amidst Mixed Q1 Results
May 1, 2024
McDonald’s has been revamping its menu offerings since the top of Q1, promising an improved flavor from its signature burgers as its consumers’ palette becomes more discerning. Now, however, the fast-food giant is upping the ante.
Fox Business reports that CFO Ian Borden has led the charge to create a “larger satiating burger,” as McDonald’s looks to “further build on our leadership in beef.”
Borden, however, has confirmed that the newer, larger offering has not officially been rolled out at all locations. Rather, the company will “be testing this burger in a few markets later this year, ensuring that it has universal appeal before scaling it across the globe,” he said.
No further information was provided to the outlet as of Tuesday, April 30, but the company confirmed that its beef and chicken product sales were nearly neck-and-neck, raking in about $25 billion each.
Back in February, when McDonald’s announced the larger burgers, CEO Chris Kempczinski explained that their motivation was “addressing an unmet customer need across markets for larger high-quality burgers.”
“We’re working horizontally across the system to innovate,” he said. “As we test and learn, we’ll be working to understand how the new offering will complement our already established burgers, like the Double QPC [Quarter Pounder with Cheese] or the Big Tasty.”
Borden confirmed on Tuesday that the revamped “Best Burgers” have already been rolled out in 80% of the chain’s locations. He also said that the improved burgers will be in “almost all locations before the end of 2026.”
These rollouts, however, have been announced amidst mixed Q1 results.
“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” Kempczinski stated during the company’s conference call on Tuesday, per CNBC.
While McDonald’s earned a revenue of $6.17 billion against the $6.16 billion expected, earnings per share fell to $2.70 adjusted against the $2.72 expected.
The fast-food chain said the segment’s same-store sales fell 0.2% — marking the first time since 2020 that sales have fallen, due in part to the boycotts of the company amidst the Israel-Palestine conflict, which began after McDonald’s sent complimentary food to IDF soldiers.
Recent News
Media Giants Depend on Sports As Content Shortages Rise
As Hollywood emerges from last year’s strikes, major media companies are turning to live sports to attract audiences and advertisers. This trend was evident during this year’s Upfront presentations, where media giants showcased their upcoming content and advertising opportunities.
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.