News

McDonald's to debut 'Extra Value Meal' this month

March 8, 2012

By the end of March, McDonald's will have an "Extra Value Menu" in place, featuring popular items such as a 20-piece chicken McNuggets, double cheeseburgers, snack wraps, medium iced coffees and snack-sized McFlurries.

The menu also will include up to four regional options.

According to Reuters, the prices of these items will not change, averaging between $1 and $2, and the purpose of the new menu is so customers can easily find the options.

Also, McDonald's will change its national advertising plan for the Dollar Menu, removing small drinks and small french fries, and adding cookies and ice cream cones, according to Neil Golden, CMO for McDonald's USA.

A 16-unit Southern California franchisee tested the Extra Value Menu. Owner Clay Paschen said the Dollar Menu is still "king and will continue to be a foundation. We are using and need both of them to continue our strategies."

February global comps up 7.5 percent

McDonald's also announced a global comparable sales growth of 7.5 percent in February. Systemwide sales for the month increased 9.4 percent, or 9.7 percent in constant currencies.

McDonald's February sales results reflect the benefit of about three percentage points from an extra day due to leap year. Performance by segment was as follows:

• U.S. up 11.1 percent;
• Europe up 4.0 percent;
• Asia/Pacific, Middle East and
• Africa up 2.4 percent.

"The cornerstone of our ongoing sales momentum is our ability to connect with customers and deliver the menu choices, everyday affordability and convenience they expect from McDonald's," said Jim Skinner, CEO.

In the U.S., comparable sales were supported by strong customer demand for Chicken McBites, classic core favorites including Filet-O-Fish, signature beverage offerings, and McDonald's breakfast line-up.

Europe posted an increase led by results in the UK and Russia. Severe winter weather in certain markets negatively impacted the segment's overall February results. Across Europe, performance benefited from value menu offerings, fourth-tier products, limited-time food events and the ongoing benefit of modernized locations.

Asia/Pacific, Middle East and Africa (APMEA) was led by Australia, somewhat offset by Japan and the shift in timing of Chinese New Year. Throughout APMEA, consumers continued to respond favorably to the region's breakfast and lunch value platforms, premium menu selections and relevant convenience.

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