But two of those three strategies (in blended-ice beverages, and core product emphasis) are either ineffective, or simply unavailable in Mickey D’s long-established U.S. market, so they’re working hard to improve domestic sales in other ways.
Its release also vaguely states, “Moving forward, the U.S. is intent on enhancing results by strengthening its value leadership and featuring relevant new product offerings across all dayparts and price tiers.”
What, exactly, does that mean?
In short, McDonald’s Corporation (NYSE:MCD) is planning on solidifying its industry-leadership position by relying on its continuously evolving menu, through which it hopes it can entice more hungry patrons to order up, instead of choosing the equally compelling promotions and menus from the competition.
Monday, for example, marked the beginning of McDonald’s Corporation (NYSE:MCD) nationwide roll-out of its “Mighty Wings,” a process which should be complete less than two weeks from now. This should worry Yum!, in particular, considering that both its KFC and Pizza Hut franchises rely on similar chicken-wing offerings to differentiate themselves from the competition.
McDonald’s Mighty Wings, Image source: McDonalds.com
Yum! Brands, Inc. (NYSE:YUM), on the other hand, is also planning an early-morning assault on McDonald’s key breakfast daypart by launching its own breakfast menu at all Taco Bell locations nationwide by the end of this year. Unsurprisingly, McDonald’s took the news in stride as it unveiled the meaty new Steak, Egg & Cheese McMuffin earlier this month, which it plans to ultimately make available in around 9,600 of its more than 14,000 U.S. locations.
Image source: McDonald’s
In addition, I noted just a few days ago that McDonald’s is also considering rolling out a new Extra Value Menu, dubbed, “Dollar Menu & More,” featuring items at price points of $1, $2, and $5 — the last of which will be utilized primarily for shareable items like the 20-Piece McNuggets.
What’s more, as fellow Fool Rich Duprey pointed out yesterday, McDonald’s is kicking off the NFL season by testing out an aptly named “Blitz Box,” which aims to feed several people at once by including two Quarter Pounders with cheese, two medium fries, and a 20-piece box of Chicken McNuggets, to boot.
Image source: McDonaldsBlitzBox.com
Once again, this seems an unmistakable effort by McDonald’s to grab business from the multi-person meals offered by Yum! Brands, Inc. (NYSE:YUM)’s Taco Bell, KFC, and Pizza Hut franchises, all of which which have long appeased diners by providing the option to purchase bulk-style boxes of their respective wares.
Foolish takeaway
With all these menu changes, McDonald’s is attempting to intelligently keep fickle consumers on their toes, and prevent them from getting bored with the same old fast food.
Of course, there’s always the chance the company’s efforts will overwhelm diners — heck, it’s almost overwhelming just reading about all its been up to lately — but remember, McDonald’s will be sure to present its changes on the menu in as simple a manner as possible, and can also rely on long-standing staples like the Big Mac, and its new variations of its old Quarter Pounder. This, in turn, should also please loyal customers who decide they just want more of the same.
In the end, then, I’m convinced this flexibility should afford McDonald’s the ability to continue rewarding investors handsomely over the long run.
The article McDonald’s Menu Blitz Is Heating Up the Fast-Food Wars originally appeared on Fool.com and is written by Steve Symington.
Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s.
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