McDonald's sales drop 1st time in 9 yrs
years, with the rise of chains such as Subway and Starbucks.
On Thursday, McDonald's said it would remain focused on underscoring its value message.
In the U.S., for example, the company is returning its focus on the Dollar Menu, which was introduced about a decade ago. The move comes after an attempt to shift customers to an ``Extra Value Menu,'' which charges slightly higher prices, fell flat.
The Extra Value Menu was intended to give McDonald's more flexibility with profit margins. With the Dollar Menu, the company has had to swap out many items over the years as costs for ingredients have climbed. For example, the Dollar Menu was first introduced with the flagship offering of the Big `N Tasty, made with a quarter-pound beef patty. Earlier this year, McDonald's even took its small fries off the Dollar Menu.
In October, McDonald's said that the impact of Dollar Menu advertising in the U.S. was offset by ``modest consumer demand'' and heightened competition. Moving forward, the company said it would continue its everyday value marketing.
The same was true for Europe, where McDonald's gets 40 percent of its business. Amid the region's ongoing economic uncertainty, McDonald's said it would offer new meal combinations at various price ranges and continue remodeling restaurants. The company said positive results in the United Kingdom were offset by declines across many other regions.
In the Asia, the company said it plans to differentiate itself with menu offerings tailored to local tastes.
McDonald's shares were down 61 cents at $86.23 in premarket trading. The
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