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McDonald's Rolls Out McLobster Across Canada as a LTO - Analyst Blog

Restaurateurs are resorting to menu innovation and promotional offers to retain their customer base amid a competitive environment. Offering McLobster throughout Canada is one such effort being made by burger giant, McDonald's CorporationMCD to win over local customers, per media reports.

McLobster has been available in Atlantic Canada for more than 10 years. But this is the first time that the item is being rolled out in restaurants across the country as a limited time offer (LTO). The offer will last till Jun 30 or till supplies end. The lobster roll sandwich costing $7.49 excluding taxes is a part of the restaurant chain's Great Canadian Taste Adventure. McLobster features 100% Canadian Atlantic lobster meat with celery, lemon-flavored mayonnaise-style sauce and shredded lettuce on a bun.

The summer promotion also includes four other regional menu items, namely maple and bacon poutine, chocolate nanaimo sundae, cottage country chicken and the Western BBQ burger.

This new menu will help customers enjoy the flavors from different parts of Canada. Though the company has been performing well in Canada, overall, its performance has been sluggish over the past few quarters.

The offer is expected to attract customers in Canada, thereby offsetting the company's weak performance in other key regions to some extent. Canada is currently a part of McDonald's Other Countries & Corporate segment. However, beginning July, Canada will report under the International Lead Markets segment. This segment will include established markets like Australia, France, Germany and the U.K., which operate within similar economic and competitive dynamics, offer similar growth opportunities and collectively represented about 40% of the company's 2014 operating income. The company had recently announced a turnaround plan that included the restructuring of its worldwide operation and certain other financial updates. (Read: Will McDonald's' Woes End with Turnaround Plans?)

McDonald's presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the restaurant industry include Dave & Buster's Entertainment, Inc. PLAY , Zoe's Kitchen, Inc. ZOES and BJ's Restaurants, Inc. BJRI . While Dave & Buster's Entertainment and Zoe's Kitchen sport a Zacks Rank #1 (Strong Buy), BJ's Restaurants carries a Zacks Rank #2 (Buy).

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BJ'S RESTAURANT (BJRI): Free Stock Analysis Report

MCDONALDS CORP (MCD): Free Stock Analysis Report

DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report

ZOES KITCHEN (ZOES): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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