When the Global Economy’s a Lemon, Sell Lemonade
McDonald’s became the world’s largest restaurant brand by watchin g, learning and adapting. Today’s second-quarter earnings call shows it still knows how to spot a trend.
McDonald’s reported a 4.8% increase in global comparable sales for the quarter, including a 3.7% improvement in the U.S. and Europe jumping 5.2%. Although the economic picture—here and overseas—remains unpredictable and generally unsteady, the company still reported a 10% improvement in operating income and a 12% spike in net income.
In the U.S. at least, that strong showing was attributable in large part to beverages. The chain’s “every large drink is $1” offer and the introduction of Frappés have taken the chain closer to its goal of being a “beverage destination” for customers. The Real Fruit Smoothies introduction that McDonald’s COO Don Thompson told analysts is “blowing away” even its rosiest sales expectations should help even more.
If high-profit beverages can compensate for depressed economies, you can be certain we’ll see more new McCafé drinks soon. McDonald’s is testing Frozen Strawberry Lemonade in Michigan; Rochester, N.Y.; and Austin and El Paso, Texas. The chain acknowledged the test this morning but wouldn’t say if or when a lemonade rollout can be expected. But watch for it.
If McDonald’s Premium Roast coffee targeted Starbucks, strawberry lemonade is a counter to Sonic, which has built its brand around its beverage menu more than any other quick-service chain. Among current limited-time offers at Sonic are Sparkling Lemonade and Sparkling Strawberry Lemonade. But Sonic isn’t alone in seeing lemonade as a summer sales star. Other recent menu additions include: Frozen Strawberry Lemonade at Panera Bread; Cherry Lemonade at Ted’s Montana Grill; Blackberry Lemonade and Raspberry Lemonade at Burgerville; and Fruit Flavored Limeade at A&W.
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McDonald’s has certaily learned to keep up with the trends, particularly since the last decade or two. It offers great tasting food at value prices in a fun style casual environment. McDonald’s established itself as the premiere family restaurant in international countries in a really big way and is a haven for most people who travel frequently.
I must add that McDonald’s regular coffee tastes better than a-n-y I have tried in any restaurant establishment from the humblest to the the best; and don’t ask about McDonald’s Mocha Frappe. It is simply FANTABULOUS.
The Angus Burger Deluxe is as good as the best in the business, although I am still a Quarter Pounder w/cheese person (extra onions, please.
Awad