Latest
Recommended
Published: Mon, October 26, 2015
Economy | By Melissa Porter

'All Day Breakfast' Bumps up McDonalds' quarter sales

'All Day Breakfast' Bumps up McDonalds' quarter sales

The struggling fast food giant announced Thursday that global same-store sales grew 4% in the third quarter of 2015, with the gains driven by growth in several worldwide markets.

Over the pond, USA restaurants have seen a 0.9% improvement in sales, which bosses believe is down to the improvement in food quality.

The Oak Brook, Ill., hamburger chain surpassed analysts' expectations with earnings of $1.40 per share.

Market experts had anticipated McDonald's to provide $1.27 in earnings for each share on $6.41 billion in income.

"While still in the early stages, we believe our turnaround plan is starting to generate the change needed to reposition McDonald's as a modern, progressive burger company", Easterbrook said while discussing the company's sudden turnaround with analysts on Thursday.

McDonald's Egg McMuffin has been in demand in recent months, with sales going through the roof.

Fast food giant McDonald's has witnessed tough times for the past few quarters and the sales continued to drop and the efforts made by the management were not fructifying.

The company's "back-to-basics" strategy - including cutting menu items and improving order accuracy - paid off in the third quarter, as McDonald's reported its first US sales improvement in two years. The news sent McDonald's shares to an all-time high.

It's also been revealed that McDonald's has started to toast its buns for longer, and is altering the method in which burgers are grilled.

Interestingly, Easterbrook was coy when asked about the All Day Breakfast campaign, saying that it is still too early to judge whether the new menu initiative is working for McDonald's.

The new menu is slowing down service, reducing average ticket costs, and causing chaos in the kitchens, franchisees told Nomura analyst Mark Kalinowski in a new survey. Finally, the company started offering all-day breakfast at many locations across the United States. To prevent an overly complicated menu and overloaded workers and to make room for breakfast items, McDonald's has removed a few less popular lunch and dinner options from its menu, like a few McWraps. "Not generating new traffic".

A third called it "erratic, distorted, disorganized direction from McDonald's", while almost a dozen more franchisees complained that it slowed down service and added complexity to the kitchens.

Like this: