Value meals and new chicken snack boosts McDonald’s

NEW YORK — Cheap eats, $1 sodas and a new chicken snack helped bring more people to McDonald’s, the company said Tuesday.

The world’s largest hamburger chain said U.S. sales rose 4.5 per cent at established locations during the fourth quarter, thanks to its two-for-$5 deal called McPick 2, soda promotions and new Buttermilk Crispy Tenders. Its delivery service, which it is expanding, also helped. Worldwide, sales rose 5.5 per cent at established restaurants.

“We served more customers more often,” said CEO Steve Easterbrook.

Value menus have become increasingly important to fast food companies looking to boost sales. Earlier this month, McDonald’s replaced McPick 2 by reviving the name of its once-popular Dollar Menu, but this time items cost $1, $2 or $3. About the same time, fellow burger chain Wendy’s expanded its four-for-$4 menu, which includes chicken sandwiches, spicy wraps and bacon cheeseburgers.

Easterbrook said it was too early to tell if the $1, $2, $3 Dollar Menu is bringing in more diners.

“We feel good about the Dollar Menu,” he said in a call with investors. “It’s very early days to comment on anything meaningful.”

Neil Saunders, a retail analyst at GlobalData Retail, said that the value meals are a “necessary evil,” because, while they bring in more customers, the deals lower profits and hurts sales of pricier items. He added that McDonald’s should find a way to increase the number of items it sells, or get people to order more of its pricier items.

On Tuesday, McDonald’s also reported better-than expected earnings and revenue for the quarter.

The Oak Brook, Illinois-based company earned net income of $698.7 million, or 87 cents per share, in the three months ending Dec. 31. Adjusted earnings were $1.71 per share, beating the $1.59 per share analysts expected, according to Zacks Investment Research. It reported revenue of $5.34 billion, above the $5.26 billion analysts expected.

McDonald’s Corp. shares fell $5.29, or 3 per cent, to close at $172.48 Tuesday.

Just Posted

Man badly injured in off-road vehicle collision on Saturday

Incident happened in Mountain View County about 10:50 p.m.

Trump-Putin summit opens without talk of election meddling

HELSINKI — With a wink and a slouch, respectively, President Donald Trump… Continue reading

Ultra-light helicopter pilot killed in crash near High River

Police say the pilot of an ultra-light helicopter is dead after crashing… Continue reading

Heat warning in effect for Central Alberta

Environment Canada has issued a heat warning for Central Alberta. Residents in… Continue reading

Westerner Days parade set for Wednesday in downtown Red Deer

Over 30,000 people are expected to line up the streets of downtown… Continue reading

CFIA inspects after video shows pigs crammed into B.C. transport truck

The video shows pigs piled on top of one another in a transport truck on a “sweltering” hot day last week

Croatia gears up to give heroes’ welcome to World Cup team

ZAGREB, Croatia — Fans are pouring in from throughout the country as… Continue reading

Statelessness a hurdle for some rescued Thai boy

MAE SAI, Thailand — The 12 boys and coach of the Wild… Continue reading

Lobbying commissioner rejects complaints against firearms panel member

OTTAWA — A federal watchdog has dismissed complaints that a mass-shooting survivor… Continue reading

CREA reports June home sales down 10.7% from year ago, but up from May

OTTAWA — The Canadian Real Estate Association says the number of homes… Continue reading

Red Deer Royals place second at Calgary Stampede parade

Royals depicted life in forest and portrayed destruction by human beings

Muslim candidates running in record numbers face backlash

SPRINGFIELD, Mass. — A liberal woman of colour with zero name recognition… Continue reading

Former UK Cabinet secretary seeks new Brexit referendum

LONDON — A former U.K. Cabinet minister from the ruling Conservative Party… Continue reading

Man killed by Chicago police ran away, reached for waist

CHICAGO — A man killed by Chicago police had a gun in… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month