Wednesday 18 September 2019

Market is lovin' it: Shares in McDonald's rise as revamp of menu and stores pay off

That’s a wrap: McDonald’s UK & Ireland CEO, Paul Pomroy
That’s a wrap: McDonald’s UK & Ireland CEO, Paul Pomroy

Global fast food giant McDonald's Corp beat quarterly sales expectations Friday, boosted by its US operations in particular where it is gaining customers with upgraded stores, new menus and promotions.

In Ireland, growing demand for salads and Veggie Wraps lifted sales in the first half of the year, according to McDonald's UK & Ireland CEO, Paul Pomroy.

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Irish outlets benefited from a 68pc increase in sales of main and side salads year on year but traditional McDonald's mainstays like the Big Mac and fries made up a third of sales in 2019 so far.

McDonald's is the latest big US chain to report solid growth driven by new menu additions, expanded delivery services and tech-enhanced stores after strong US sales numbers from Chipotle Mexican Grill and Starbucks.

"These three [companies] are using their operating scale and their business strength to essentially outflank smaller competitors and generate very strong sales growth and bottom line profits," said analyst Bob Derrington of the Telsey Advisory Group.

McDonald's has moved to respond to competition from newer brands, shifting consumer taste and the impact of delivery services like Deliveroo and Uber Eats by developing new ways of attracting and retaining customers.

Irish Independent

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