Can McDonald’s Digital Strategy Reverse It’s Sales and Traffic Woes?

The last several years have been a dark time for McDonald’s as its domestic same-store sales fell 1.3 percent in 2016. Worse yet, the number of customers its been drawing has been dropping every year for the last four years. After tinkering and tinkering with its menu, what does McDonald’s management think will turn things around? Mobile ordering, curb side delivery and other delivery methods like GrubHub. Normally, we’d applaud a company adopting Connected Society strategies, but after seeing the buildup of orders that Starbucks has to contend with and the prospects of getting cool to cold McDonald’s food delivered, we’re going to say the Golden Archers needs to focus on the quality of its food to lure back diners.

Chris Kempczinski, McDonald’s USA President, admitted that the chain has lost “hundreds of millions” of visits to competitors since 2012, a trend the company is trying hard to turn around with initiatives like the new mobile app.

Customers will be able to access their app profiles — which can include their preferred payment methods and a customized list of menu favorites — on the touch-screen ordering kiosks McDonald’s has introduced to some U.S. stores already, the company says.

And for those who don’t feel like going out in public to get their food at all, McDonald’s says it’s experimenting with different delivery models, including partnering with third parties like GrubHub.

Source: McDonald’s Banking On Mobile Ordering & Curbside Pickup To Win Back Customers – Consumerist

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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