McDonalds Proves Cheap Can Be Profitable
Trust me, I’m not mad at McDonalds in any way.
McDonalds posted a growth in sales of 4.3%, thanks in part to cheaper meal options and the introduction of their new coffee, which I guess must be pretty good (I don’t drink coffee). They did better in Europe, at 7.2% growth. They report this as “same store sales“, which means stores that have been in existence at least a year or more, the industry’s way of seeing whether growth is because a new store has appeared or that older stores are doing something right.
Now, the other side of this is that total sales declined .3%, which is blamed on currency translation, aka exchanges. Obviously this means dollars, not actual number of sales.
Of course, let’s talk about these “cheaper meals” for a quick minute. These are obviously some of the specialty things they’ve come up with lately, because the price of a fish meal (which I gauge everything off, by the way) has jumped at least 75 cents, and that’s before you decide on the option to supersize. Maybe it’s the introduction of their new 1/3rd pounder Angus beef burger; no, I haven’t tried that one yet.
I have been taking advantage of their ice cream this summer, though. Since McDonalds is literally a 1 1/2 minute drive from the house, it’s convenient to get to (Burger King is actually closer, but no ice cream). Anyway, it’s tasty in a cone, but I buy a dish of it, bring it home, and add my own Hershey’s chocolate to it. At 87 cents after tax, it’s a great price, and enough ice cream for me, and just small enough for my wife not to get on my case about it.
So, no hate for McDonalds today; “I’m lovin’ it!”