McDonald's

Financing

McDonald's has a $73B impact on the U.S. economy

The fast-food giant also supports 1 million jobs, including 740,000 people who work in the chain's restaurants, according to a study the company commissioned by Oxford Economics.

Financing

McDonald's franchisees send a message with a 'bill of rights'

The Bottom Line: The National Owners Association, an independent group of the fast-food chain’s operators, has approved a list of 15 standards it considers vital to fair franchising, including the right to set prices.

The Bottom Line: The fast-food giant wants to ensure that its prices represent a good value. But in doing so, it is toying with a key tenet of being a franchisee: The ability to set prices.

The Bottom Line: The quick-service giant’s dichotomous year was illustrated with back-to-back stories on the chain’s successful Grinch meal and its new value-focused franchising standards.

The fast-food giant, which is trying to bring back lower-income consumers frustrated by menu price inflation, will take additional steps to monitor operators’ work with third-party pricing consultants.

The fast food giant’s latest effort at nostalgia-based marketing is apparently flying out of its restaurants, to the point that locations are already running out of the chain’s Grinch-themed socks.

In a campaign-style speech to the fast-food giant’s franchisees, the president praised the company’s price cuts on Extra Value Meals and vowed to lower inflation.

The Bottom Line: The fast-food giant argues that its lower-priced combo meals will generate more customers and more sales over time, and profitability will follow. But costs aren’t exactly decreasing.

The company’s same-store sales rose 2.4% in the U.S. last quarter as the fast-food giant works its way out of a domestic slump. Each of the chain’s major markets showed growth in the period.

McDonald's Extra Value Meals campaign with 5% lower prices hasn't reversed declining foot traffic, with visits down 3-5% post-launch as value wars intensify across fast-food chains struggling with low-income consumer pullback.

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