McDonald's Revamps US Strategy Amid Flat Customer Traffic Expectations
McDonald's is revamping its US business strategy by introducing new menu items and in-restaurant advertising. The company confirmed that it is testing protein-forward additions, including bowl-based dishes, grilled chicken, and egg snacks. These items are still in development, with no launch timetable set.
In a separate move, McDonald's is experimenting with third-party advertising on digital menu boards at select company-operated restaurants. Commercials appear after customers complete their orders on screen. The Monopoly game is also returning to the US from October 6 to November 1, with game pieces scanned through the company's app.
McDonald's is working towards a longer-term value agreement with its franchisees in the US. A bridge plan would rely on limited-time seasonal items and digital discounts to keep price-sensitive diners coming through the doors. The company has pledged around $8.5 billion in support for franchisees through 2036.
Management expects flat customer traffic across its own US restaurants, according to Reuters. To shore up the network, McDonald's is targeting operating margins in the low-to-mid 50% range by the end of the decade. Analysts have trimmed their price targets due to pressure on US sales and execution risks.