Innovation and Brand Reinvention: McDonald's CEO Emphasizes their Crucial Role in Sustained Success

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Promising to constantly innovate and reinvent, McDonald's CEO Chris Kempczinski affirms the brand's commitment to advancing its digitalization efforts and unifying global marketing, even when already in a position of strength.

McDonald's is an adaptable brand that does not rely solely on its past accomplishments, as stated to investors today (30 October).

An illustration of this is the acknowledgement that "consumers are becoming more discerning when it comes to their spending choices and preferences" given the current high inflation rates. Consequently, the brand remains committed to prioritizing value.

Menu innovations, such as the introduction of "saver meals" in the UK, were emphasized. Ian Borden, the Chief Financial Officer, also highlighted the company's efforts to enhance customer value perceptions by providing new experiences. He cited the ongoing McDonald's Monopoly initiative, now in its 17th year in the UK, which allows customers to participate through both the digital app and physical packaging, offering the opportunity for double peeling.

In Australia, a similar initiative is in place, with the latest period (quarter three) experiencing exceptional digital sales. This growth can be attributed to consumers signing up on the app and exchanging Monopoly game pieces.

Furthermore, the promotion has been introduced in Spain as well, leading to a notable rise in digital interaction for McDonald’s.

In the third quarter, digital sales accounted for over 40% of McDonald's sales in its top six markets, including the UK. McDonald's is strengthening its relationship with consumers and targeting lapsed customers through its expanding digital presence, according to Borden.

As McDonald's enters the final quarter, it aims to further engage consumers digitally through promotional activities in the UK. The "Festive Wins" campaign will offer consumers a new daily offer through the app throughout November.

Consumers can expect a wide range of offers, including a 99p Big Mac and the opportunity to participate in weekend competitions for exciting prizes. To take advantage of these offers and prizes, consumers will require the app for access.

Borden used the Monopoly digital roll-out in various markets as an illustration of McDonald's "one McDonald's way" philosophy. With this approach, the company aims to apply successful strategies from one market to others in a manner that is both globally consistent and locally relevant.

‘Business built on value’

To reinforce its brand presence globally, the company not only engages in promotion but also incorporates this strategy into its advertising. A prime illustration of this is the recent introduction of the 'As Featured In' campaign across more than 100 markets, epitomizing the brand's influence on the global cultural landscape.

McDonald's third-quarter global comparable sales increased by 8.8% compared to the same period last year, reaching $6.69bn (£5.51bn). In order to address the effects of inflation, the company has implemented price hikes. It has collaborated with external advisors to analyze and implement these recommended price adjustments.

Kempczinski asserted that McDonald's remains at the forefront of affordability and is recognized for delivering exceptional value for money. He emphasized that value is an essential component of the brand.

“We’re a business built on value,” he added.