McDonaldâs launched its biggest marketing campaign in history. It worked
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McDonaldâs sales have finally turned a corner, thanks in part to âA Minecraft Movieâ meal deal that marked the chainâs largest marketing campaign ever. Sales at McDonaldâs US locations open at least a year rose 2.5% for the quarter ending June 30, putting an end to two consecutivequartersof sinking sales. The chain credited its âstandout marketing,â which included the massive movie promotion and the launch ofcrispy chicken strips, for the turnaround. McDonaldâs in late March released a Happy Meal for kids with themed toys and an adult meal tied with the release of the Minecraft Movie, which was released by CNNâs sister company Warner Bros. Pictures and grossed nearly $1 billion worldwide. The promotion ran in 100 markets, helping global sales at stores open at least a year rise 3.8%. Plus, total revenue jumped 5% to $6.8 billion, the company said Wednesday. Last quarter, CEO Chris Kempczinski said that low- and middle- income customers were pulling back their spending and visits at the chain, prompting McDonaldâs to freshen up its menu offerings and promotions. Kempczinski said Wednesday that the trends largely continued: Visits from low-income consumers âonce again declined by double digits versus the prior-year period.â But visits from middle-income consumers has improved. He added that âre-engaging the low-income consumer is criticalâ because they visit McDonaldâs more frequently than middle- and high- income customers. To do that, it will continue tooffer value mealsand has extended the $2.99 price for the Snack Wrap until the end of the year. Still, Kempczinski acknowledged that âconsumersâ value perceptions are most influenced by our core menu pricing,â a nod to theconnotationfrom some that the chain has gotten too expensive. Value-minded consumers are âtoo oftenâ seeing combination meals that cost more than $10 and that is âshaping value perceptions in a negative way,â Kempczinski admitted. âWeâve got to get that fixed.â McDonaldâs is having conversations with its US franchisees to develop ideas on how to make changes, but he didnât offer additional details. Given the success of its new menu items and promotions, McDonaldâs is keeping its foot on the gas this quarter. Next week, the company plans to launch of a new âMcDonaldlandâ meal aimed at nostalgic adults, with a mystery-flavored shake. Itâs also revamping its beverage options under the CosMcâs banner at 500 McDonaldâs in September following theclosure of that spinoff. McDonaldâs (MCD) stock opened nearly 3% higher. This story has been updated with additional context.