McDonald's to Offer McPick 2 Menu
November 16 2015 - 5:17PM
Dow Jones News
By Julie Jargon
McDonald's Corp. has come up with a new value menu that it hopes
will attract cost-conscious customers after years of losing
traction with its existing low-price selection.
The new "McPick 2" menu, starting on Jan. 4, will allow
customers to pick a pair of items for a total of $2 from among four
choices: the McDouble and McChicken sandwiches, a small order of
french fries, and mozzarella sticks.
Finding the right value offering has been a central trouble spot
for a company that otherwise has started making progress in the
turnaround of its critical U.S. market. McDonald's has struggled
for several years to find the right formula, with previous tweaks
to its Dollar Menu failing to catch on with customers--including
the "Extra Value Menu" in 2012 and the "Dollar Menu & More" the
following year, both of which offered a selection of products at
different prices.
Analysts have been expecting the switch to a two-for-$2 deal,
which McDonald's was discussing with franchisees.
"We view the move toward a long-term national value platform as
positive for McDonald's," Nomura Securities analyst Mark Kalinowski
said in a note last month. He said the recent "Dollar Menu &
More" had confused some customers and failed to ignite growth.
Other fast-food chains also have struggled to find the right
pricing balance on their menus, including Wendy's Co., which
recently said it's figured out that the sweet spot for its
customers is bundled meals costing $4 to $6. Wendy's last month
introduced a "4 for $4" deal--consisting of a Jr. Bacon
Cheeseburger, chicken nuggets, fries and drink--and later cited the
effort's success as the reason for raising its sales-growth
guidance for the year.
McDonald's McPick menu will be available for five weeks, after
which time the company might alter the items.
Write to Julie Jargon at julie.jargon@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 16, 2015 17:02 ET (22:02 GMT)
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