********McDonald's launches McValue 2.0 value menu********
Key Questions
What is McDonald's new McValue 2.0 menu?
McDonald's McValue 2.0 includes an Under $3 Menu with items like $1.50 Sausage McMuffin or sausage biscuit SL, and $2.50 McDouble, McChicken, or Nuggets, compared to an average of $3.30. It also features $4 Breakfast bundles with McMuffin, hashbrowns, and coffee, plus expanding $5-$6-$8 meal deals.
When is the McValue 2.0 menu rolling out nationwide?
The menu launched nationwide on April 21. It received unanimous franchisee support and $35M in OPNAD funding, unlike prior backlash.
How has the Big Arch burger impacted McDonald's traffic?
The Big Arch generated +2.2% traffic lift and viral video buzz, with CEO Chris Kempczinski responding positively despite backlash, even joking about his mother. It highlights potential for sell-out buzz to drive margins.
How is Burger King performing against McDonald's value efforts?
Burger King's revamped Whopper saw +7.4% visits initially, then +5.4%, +2.2%, and +3.2%, outperforming McDonald's declines. Evercore views McValue as no game-changer.
What chicken menu changes is McDonald's testing?
McDonald's is testing McCrispy Strips with Sweet Chili and Teriyaki sauces in Chicago, as part of a shift toward more chicken options at select locations.
What local adaptations and LTOs are featured?
Local deals include new McValue additions in Johnstown and Altoona. There's also a KPop Demon Hunters Huntrix Meal with Ramyeon Fries and new sauces, receiving mixed reviews.
How does McValue position McDonald's amid economic pressures?
It's a recession shield against rising gas and oil prices, contributing to 6.8% US same-store sales growth. Q2 P&L performance is under watch.
What other global promotions are mentioned?
McDonald's launched a pro gamer menu globally, alongside Chick-fil-A's phone-free ice cream and Dairy Queen's 99-cent Blizzard return.
April 21 nationwide rollout: Under $3 Menu ($1.50 Sausage McMuffin/sausage biscuit SL, $2.50 McDouble/McChicken/Nuggets vs $3.30 avg), $4 Breakfast (McMuffin/hashbrowns/coffee)/$5-6-8 meals expanding; unanimous franchisee support/$35M OPNAD vs prior backlash; Big Arch +2.2% traffic/viral video buzz (CEO Kempczinski clapback); BK Whopper +7.4% then +5.4/2.2/3.2% visits vs MCD declines/Evercore no game-changer; chicken McCrispy Strips Sweet Chili/Teriyaki Chicago test; recession shield amid gas/oil; pop culture deals project rev growth; local adaptations/KPop LTO mixed; 6.8% US SSS growth/Q2 P&L watch.