- McDonald’s bet on nostalgia and value is paying off. In the company’s latest earnings report, global same-store sales for the second quarter increased 3.8%, while sales in the U.S. increased 2.5%. Overall systemwide sales increased 8% and consolidated revenues increased 5% to $6.8 billion.
- In a call with analysts, company executives pointed to its “McValue platform,” which includes a $5 meal deal and a “buy one, get one for a dollar” deal, as a key driver enticing customers.
- Executives expected the second half of the year to remain strong, based on continued customer interest and comparisons to the fourth quarter of 2024, which saw sales drop due to an E. coli outbreak.
“We’re finding new ways to tap into what our customers want and believe no one is better positioned than McDonald’s to deliver more of these moments to our fans,” said company CEO Chris Kempczinski in the call. “When we make a commitment to value and affordability and couple that with menu innovation, we drive strong results.”
Over the past year, McDonald’s has pivoted its marketing strategy, particularly in the U.S., to focus on value pricing and nostalgia marketing. Last summer, the QSR chain introduced a $5 Value Meal that included a sandwich, five-piece McNugget box, fries and drink, which proved to be an instant success. This year, the chain reintroduced its popular SnackWrap, after a nine-year absence on the menu, with a national introductory price of $2.99. (Kempczinski noted that franchises had recently opted to continue that pricing through the end of the year.)
“McValue is working. When you think about McValue, we have the $5 meal deal that continues to perform,” Kempczinski said in the earnings call. “And we also have the ‘buy one add one for a dollar’ program. What’s interesting is that those two programs are very complementary. If you look at consumers who are using both, it’s only about 8%. So we’re going after two very different users.”
McDonald’s has also tapped into the prevailing sense of nostalgia that has found its way into other companies’ marketing as well. In addition to the SnackWrap reintroduction, the chain will soon begin offering a “McDonaldland” meal that will showcase the brand’s famous characters (including Ronald McDonald, the Hamburglar and Grimace) on souvenirs that come with a meal order.
“Over the past few years we’ve seen how fans flock to our characters, everyone from Grimace to the Hamburglar. But many, especially the new generation, don’t know that’s just the tip of the iceberg. There’s an entire magical world of McDonaldland filled with characters, places and lore,” said Jennifer “JJ” Healan, McDonald’s VP, U.S. marketing, brand, content & culture, in a statement. “And so, for the first time in decades we are taking fans on a trip to McDonaldland with an immersive experience that taps into the past to create the future. It’s a chance for us to give fans a new, modern way to experience this magical world.”
