McDonald's Corp.MCD is once again back with a new promotional offer. This time the burger giant will reportedly launch McPick 2 for $2 value platform in Jan 2016 at U.S. restaurants, thereby replacing the Dollar Menu & More offering.
Picks of McPick 2
The offer that is expected to play a crucial role in the food chain's turnaround will allow its customers to pick any two items from a menu of four - the McDouble, the McChicken, Small Fries and Mozzarella Sticks - for $2. Accompanied by a profound marketing campaign, the offer will be available beginning Jan 4 and run for five weeks through Feb 8, 2016. However, local markets will be able to extend the promotion.
McDonald's is not the only one in the restaurant industry that has been developing value offerings to boost comps. While The Wendy's Company WEN recently began offering the 4 for $4 bundled meal, Burger King, now a brand of Restaurant Brands International Inc. QSR , offered its customers the 2 for $5 menu earlier this year.
Just Other Way to Boost Comps
This value offering is another marketing strategy of this burger giant to continue its sales momentum next year. After posting negative comps for a long time, the company recorded positive global comps in the third quarter on the back of its aggressive efforts like product innovation and roll out of more limited-time offerings. Other efforts like trimming complicated menus to speed up service and providing items with special ingredients that are popular in certain regions of the country have also been its priorities.
Moreover, the company is offering customized burgers through its "Create Your Taste" program. Also, the company has devised new cooking methods like heating its buns for a longer period or changing the way it sears and grills its beef, thereby making its patties juicier. These initiatives are intended to offer tastier food across the board.
Meanwhile, the company rolled out an all-day breakfast at the beginning of the fourth quarter, which would aid comps going forward. These initiatives are expected to help the company to meet the target of positive comps in the fourth quarter.
Per market analysts, value offerings will play a vital role in the company's turnaround. We would like to remind investors McDonald's sales received a big boost in 2003 after the company introduced its Dollar Menu and the sales momentum continued for the almost a decade. However, it dropped in 2013 after the company replaced the Dollar Menu with the Extra Value Menu and Dollar Menu and More that turned out to be less compelling than the prior offering.
McDonald's presently has a Zacks Rank #2 (Buy). BJ's Restaurants, Inc. BJRI is also a well ranked stock in the restaurant industry sporting a Zacks Rank #1 (Strong Buy).
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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.
