Wednesday, October 30, 2013

Healthy Eating Means Slim Profits for Fast Food Restaurants

It seems as though the health movement is gaining momentum across America. According to a recent Harris Interactive study on food choices, 56% of the respondents said they were likely to choose a restaurant based on their health and dietary needs. In another recent survey, one in three Americans said they wish to eat healthy – and restaurants across the country seem to be obliging.

Fast food chains, over the years, have been in the news for all the wrong reasons. Studies linking child obesity with the consumption of fast food have given a bad reputation to fast food in general, and no other company has been affected as much as McDonald’s.

After experiencing declining sales across a majority of its locations in the US and Europe this year, McDonald’s recently added the ‘healthy’ McWraps to its permanent menu. The company has also stated that it will add more healthy items to its Happy Meal menu for kids, including fruits, vegetables and low-calorie beverages. Read more about Healthy Eating.

Wednesday, October 2, 2013

McDonald’s Has This Appetizing News for Its Faithful

McDonald’s (NYSE:MCD) wants to make sure all of its Millennial customers are still “Lovin’ It,” and that’s why the fast food giant is now testing out a loyalty program that it believes will better appeal to its Generation Y consumers and their smartphones.

According to Bloomberg, McDonald’s has confirmed that it is launching an electric loyalty program in about 570 United States locations with the help of mobile solutions marketer Front Flip LLC. Similar to programs employed by Starbucks (NASDAQ:SBUX) and Panera Bread Co. (NASDAQ:PNRA)the program rewards frequent customers with free food and other offerings, and also promises deals that are expected to drive traffic into McDonald’s stores.Read More:

McDonald’s Stores Trying Loyalty Program

McDonald’s Corp. (MCD) franchisees are rolling out an electronic loyalty program in about 570 U.S. locations as stores seek to attract younger customers.
Mobile solutions marketer Front Flip LLC has introduced a loyalty application in about 420 McDonald’s stores that rewards customers with free food and other offerings. It is adding another 150 locations in coming weeks, Front Flip founder and Chief Executive Officer Sean Beckner said in an e-mailed statement.

The world’s largest restaurant chain has been testing a mobile payment program and introducing new items, such as pumpkin lattes and chicken wings, to lure teens and young adults as business in its home market stumbles. Sales at U.S. restaurants open at least 13 months rose 0.2 percent in August, trailing the 0.8 percent gain projected by analysts surveyed by Consensus Metrix.  Raed More:

Tuesday, October 1, 2013

McDonald's Innovation Is Key For Shareholder Return

McDonald's (MCD) reported its sales for the month of August earlier this month. Globally speaking, the company's sales rose a robust 1.9% on recovery in Europe. However, domestically, the company's U.S. sales rose just 0.2% last month. While McDonald's clearly has a mature business in the U.S., I see burgeoning domestic competition increasingly threatening its market share at home. The issue could weigh on the company's overall growth moving forward and impact its valuation and stock price. So, in order to preserve value, McDonald's must stay relevant in the U.S. through product innovation. Read More