The biggest external factor affecting McDonald's is the weak econonmy. As consumers plan to spend less money, they look for lower cost dining options which results in good news for McDonald's investors as the sales continue to increase. Additionally, McDonald's is attempting to differentiate some of its product offerings from the other fast food chains, and thus rolled out the McCafe real fruit smoothies and frappes on July 13th. These new product offerings appeared to contribute to the 5.7% sales increase McDonald's posted in July. The August sales figures are tentatively planned to be released on September 9th and we will have to wait and see the results, but the expectation is another GREAT month.
http://articles.moneycentral.msn.com/news/article.aspx?feed=AP&date=20100907&id=12009837
http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html
MCD stock closed today at $75.80 which is up $0.71 (or 0.95%).
http://www.google.com/finance?q=mcd
So, my question is. Are the fruit smoothies really good for you or is it a way to get you in the doors of McDonalds?
ReplyDeleteA 12 ounce cup of the Strawberry Bananana and the Wild Berry Smoothies has 210 calories. They are low in sodium (30) and high in vitamins (a - 100). I would say yes they are good for you but they are trying to get you in the door too. Remember, you don't have to shop there if you don't want - which is why I do not put the blame on obesity with McDonalds and others.
ReplyDeleteI'm not sure how much exactly the fruit smoothies actually played a role in the sales since McDonalds has come out with multiple good ideas. Their cheap premium coffee broke into the Starbucks market and their McCafe stuff has been around for about a year or two. They could still be living off the past successes.
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