Burger King's US sales are soaring as customers embrace its revamped Whopper burger – while long-reigning McDonald's suffers flailing growth in its largest market.
McDonald's said that its latest value menu hasn't worked out. The chain has also cut back on digital discounts, its CEO said.
CEO Chris Kempczinski says weak promotion of value deals and a pullback in digital deals led to a drop in visits from McDonald's loyal customers.
A new $3 value menu didn't deliver as much as hoped for—but McDonald's still posted a profitable quarter.
The fast-food chain said too many promotions at once led to confusion for staff and customers alike.
McDonald's says an attempt to lure budget-conscious consumers backfired in its latest quarter. The fast food giant reported earnings Tuesday (Aug. 4) showing that while its global sales were up 4%, comparable sales in the U.S. climbed just 0.8%—compared to 2.5% during the same period last year—falling short of internal expectations.
McDonald's (MCD) shares are inching higher on Tuesday after the fast-food giant delivered steady Q2 performance, supported by an aggressive value push and accelerating digital adoption. For its second financial quarter, MCD recorded a better-than-expected $3.38 per share of earnings (EPS), on a 4% year-over-year increase in revenue to $7.1 billion – which nonetheless missed the consensus.