Last year, the Golden Arches saw its stock soar by 25 percent, and analysts believe that they know the key to McDonald’s tremendous 2015 growth: a diverse menu. The restaurant chain has been experimenting with new menu items in recent years, which has greatly helped sales soar, at least in the U.S.
In 2011, McDonald’s fared better than most rivals including KFC, Wendy’s and Burger King. The company’s stock price is just 2 percent below the highest level recorded, which is amazing since the Dow Jones index is down by nearly 10 percent.
Steve Easterbrook, who became chief executive of the popular burger chain in March, 2015, pledged that he would bring new life into the business. And a means to do it was to change the policy on menu changes.
Traditional view was to introduce new food items every now and then to boost sales and keep consumers interested. But that is a recipe that worked in more thriving years. Easterbrook was inspired enough to adopt a new approach in a moment when people were less likely to spend on fast-food.
Last fall, the CEO told investors that the company should focus on quality, great-tasting options, and convenience if it wanted to see any growth. But this was a general course of action that should be followed. In the meantime, the fast-food giant allowed local franchisees to experiment with new menu items that could lure in picky customers.
For example, Ohio restaurants introduced macaroni and cheese, while Texas venues offered sweet potatoes fries. Plus, the Dollar Menu was removed as no longer profitable and replaced with a two dollar menu, where consumers can choose two items.
But the company’s most inspired move was the all-day breakfast menu. The decision was taken as a response to customers’ complaints about not being able to make it in time, i.e. to be at McDonald’s before 10:30 a.m., to be able to enjoy the breakfast menu.
An independent research shows that three of ten people that bought breakfast after 10:30 a.m. were customers that hadn’t eaten at a McDonald’s restaurant the month prior the roll-out.
But the new menu not only lured in more customers. Researchers found that consumers who opted for a breakfast item bought other food items from McDonald’s offer, as well. Plus, these people usually ate at the restaurant shortly after mid-day which is every restaurant business’ slowest-growing part of the day.
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