McDonald’s gets back to growth with chicken strips and Minecraft meals
A movie tie-in and a menu refresh gave McDonald's the momentum it had been craving following a sluggish start the year
Artur Widak/NurPhoto via Getty Images
McDonald’s sales bounced back in the second quarter as a swath of novelty offerings — including Minecraft-themed meals — helped lure back inflation-weary diners.
Suggested Reading
Global sales surged 3.8% in the second quarter, the company said Wednesday, beating analyst estimates of a 2.6% rise and marking the sharpest jump in nearly two years.
Related Content
Across McDonald’s U.S. portfolio of about 14,000 restaurants, sales at locations open for at least a year rose by 2.5%, mainly thanks to people making bigger average purchases. The fast food giant had suffered its biggest U.S. sales drop since the height of the COVID-19 pandemic in the previous quarter, which senior executives blamed on customers' concerns about the economy.
The results also come after several setbacks in the last 18 months including a major E.coli outbreak, plus global backlash against its presence in the Middle East.
McDonald’s CEO Chris Kempczinski attributed the gains to “the power of compelling value, standout marketing and menu innovation.”
“When we stay focused on executing what matters most to our customers, we grow,” he said.
Among those efforts include the launch of meals tied to the release of A Minecraft Movie, the film based on the video game. Those included collectible toys and the ability to redeem purchases as in-game features in Minecraft. The chain also relaunched chicken strips in the U.S. and introduced more meal deal bundles aimed at price-conscious consumers.
McDonald’s later hailed the return of $2.99 Snack Wraps in July, almost a decade after it discontinued the item. The offering led to a measurable surge in restaurant traffic and sales growth, signaling the kind of consumer enthusiasm the company had been craving after a sluggish first part of the year.
According to location analytics from Placer.ai, McDonald’s foot traffic jumped by double digits on each of the first three days of the Snack Wrap relaunch compared to the year-to-date daily average. Because of the timing, the second-quarter earnings report does not include the wrap’s impact. Gut Q3 could tell a similar story if traffic and loyalty trends hold.
Second-quarter revenue was $6.8 billion, up 5% and higher than analist estimates of $6.7 billion. The company also has plans to test new drinks including cold coffees across more than 500 U.S. stores from September.
—Emily Price contributed to this article.