The fast food giant has a bold plan that’s bigger than any Mac and more special than even its own sauce.
McDonald’s had an amazing quarter not only in the US but globally.
In fact, the numbers were so good that CEO Chris Kempzynski was somewhere between exuberant and hilarious when he shared the numbers during the company’s first-quarter earnings call.
“What’s remarkable about this earnings call is the consistency in McDonald’s, the consistency in the strength of our numbers, the consistency in the strong drivers of our business, the consistency in the excitement that exists across the system about the opportunities ahead of us,” he said during Connection.
Let’s start with the numbers. On the top line, you just need to know number one, 12.6%. US comparable sales, 12.6%, IOM comparable sales, 12.6%, IDL comparable sales, 12.6%, and global comparable sales, you guessed it, 12.6%. “
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These numbers are unbelievable when you consider that McDonald’s delivered its big numbers without the deep discounts.
International brands restaurant (QSR) – Get a free report Burger King’s comparable sales grew 8.4% globally, while Wendy’s’ global sales grew 8.4% (n) – Get a free reportIt was 6.4%, up 5.9% at US McDonald’s restaurants (mcd) – Get a free report It does have some deals, but Wendy’s relied on 4 for $4, a $5 Biggie bag, and a 2 for $6 bag, while Burger King heavily advertised its $6 Your Way offer.
McDonald’s has a huge advantage over its two major competitors that it has been able to build both globally.
McDonald’s / The Street
McDonald’s has a major edge
McDonald’s recognized the importance of building its digital operations ahead of its competitors. That’s why the company has taken the painful steps to force its franchisees to adopt a digital-first approach built around delivery and vehicle.
During the call, the chain’s chief financial officer, Ian Borden, explained how well that’s been working.
“MyMcDonald’s Rewards is another example of how we’re leveraging our marketing engine to spread our loyalty platform throughout the system,” said the executive.
“Now in 50 markets, loyalty builds stronger relationships with our customers, and results continue to shine. In our top six markets, digital sales now account for nearly 40% of systemwide sales, or nearly $7.5 billion, and growth of over 30%. % over the past year.
McDonald’s digital membership numbers are particularly strong when compared to Starbucks (sex) – Get a free reportThe company is generally regarded as the leader in app-based, mobile ordering and payment loyalty rewards programs.
Starbucks, which only reports to its loyalty program members in the United States, ended its most recent quarter with more than 30 million active rewards members.
Across its six largest markets, McDonald’s has the largest membership base.
Borden added, “We have nearly 50 million active 90-day members across these major markets, and our relationship with them continues to grow. We’re learning when they visit, how they visit, and what they buy.”
Why are members of the rewards program a huge advantage over Burger King and Wendy’s?
Most of McDonald’s promotions have been run through their app. The company has eschewed most traditional promotions and discounts and instead held major app-based events such as the “Summer Camp” promotion. Wendy’s and Burger King are trying to do the same, but are far behind their competitor.
In addition, McDonald’s uses data from its app to make other decisions.
“With more and more of our sales arriving through select channels than ever before, we also continue to improve the mobile app experience for our customers with new initiatives that provide more seamless interaction. The US market, for example, is piloting a new way to order through our app,” Share Finance Director.
Essentially, McDonald’s has so much data from its customers that it can almost see into the future.
“Using existing location data, it allows our crew to start collecting a customer’s order before it arrives at the restaurant, and eventually deliver hot and fresh food when customers arrive to pick up their order,” Borden added.
This is not unlike Amazon technology (AMZN) – Get a free reportUsed in their warehouse to initiate packing orders before they are placed. Data like this enables McDonald’s to be more efficient across the board. Yes, it can get you to your food faster, but that’s only part of it because the data also helps the company manage inventory and labor.
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