McDonald’s brass working on ways to lure back customers

The Street
The Street
  • 3 months ago
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why McDonald’s continues to struggle.

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Transcript
00:00I'm Conway Gibbs reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:05There were small moves on Wall Street to begin the week as investors prepare for a deluge
00:09of information.
00:10Investors are looking ahead to a key reading on the labor market, a press conference from
00:14the Federal Reserve, and the busiest week of earnings season so far.
00:18Microsoft, Starbucks, Electronic Arts, JetBlue, and PayPal each report results on Tuesday.
00:25In other news, consumers are irate at McDonald's menu prices, and that is leading to a rethink
00:31at the world's largest fast food chain.
00:33The soul-searching follows dismal second-quarter results, a measure of global sales surprisingly
00:38dropped for the first time in over three years, and profits missed expectations.
00:44McDonald's is particularly struggling with lower-income customers.
00:48Quote, consumers still recognize us as the value leader versus our key competitors, but
00:53it's clear that our value leadership gap has recently shrunk.
00:56We are working to fix that with pace, CEO Chris Kuczynski told analysts on an earnings
01:01call.
01:02In an attempt to lure back diners, McDonald's is working on a plan to extend its $5 budget
01:07deal beyond August.
01:09Early consumer response to the promotion is promising, but McDonald's admits it expects
01:15the dissatisfaction with food inflation to linger for a lot longer.
01:19While overall inflation has moderated, the cost of eating out has not.
01:24Food-away-from-home jumped 4.1 percent in June from a year ago, according to the Consumer
01:29Price Index.
01:31That rise was triple the price gain for eating at home.
01:35That'll do it for your daily briefing from the New York Stock Exchange.
01:38I'm Conway Gittins with The Street.

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