McDonald’s, the fast-food giant, is making changes to its burgers in an effort to boost sales. While the company has been outperforming its competitors in recent quarters, it saw a dip in U.S. traffic in the third quarter as low-income customers cut back on visits. Analysts are expecting U.S. same-store sales growth of just 4.4% in the fourth quarter, compared to the previous quarter’s 8.1% growth. To attract more customers and increase traffic, McDonald’s has launched its “Best Burger” initiative, which involves small tweaks to the chain’s burgers to create a more flavorful product.
The goal of the initiative, according to McDonald’s U.S. Chief Restaurant Officer Mason Smoot, is to enhance the quality, flavor, and overall eating experience of their core burgers while staying true to the tastes that everyone loves. The changes include adjusting the cooking and assembly processes. The patties are cooked with more breathing room on the grills, allowing for better flavor. Only six patties are cooked at a time, down from eight, to ensure optimal taste. Onions are added before cooking to soak up the patty’s juices, and the cooked patties are kept hotter to maintain warmth until they reach the customer. The cheese is melted better, the buns are upgraded, and Big Macs receive more of their special sauce.
Analyst Mark Kalinowski believes that these changes are a step in the right direction for McDonald’s, improving their core products while staying true to their brand identity. The better-tasting burgers have been rolled out gradually over the past year and are now available at all McDonald’s locations nationwide. Some of McDonald’s important international markets, such as Australia and Canada, have already implemented the “Best Burger” changes and have seen positive results.
At McDonald’s investor day in December, CEO Chris Kempczinski stated that “Best Burger” is expected to be available in 70 markets by the end of 2023, with nearly all markets serving the upgraded burgers by 2026. The company is promoting the changes through its iconic character, the Hamburglar, who has been featured in McDonald’s ads since the 1970s. TV commercials and endorsements from the Hamburglar on McDonald’s website aim to highlight the improved taste of the burgers.
However, Wall Street has mixed opinions on whether the “Best Burger” initiative will drive significant growth for McDonald’s. Some analysts, like Zachary Fadem from Wells Fargo, see it as a potential upside driver for the company in 2024. Others, like Peter Saleh from BTIG, are more skeptical and believe that improving the quality of food is an ongoing process for fast-food chains. Despite differing opinions, there are promising early signs that customers are interested in trying the improved burgers, with reports of a 10% lift in burger transactions due to the “Better Burger” initiative.
In conclusion, McDonald’s is making changes to its burgers in an attempt to boost sales and attract more customers. The “Best Burger” initiative involves small tweaks to enhance the flavor and overall eating experience of their core burgers. While there are mixed opinions on whether these changes will drive significant growth, early signs indicate that customers are interested in trying the improved burgers. McDonald’s plans to roll out the changes globally and promote them through its iconic character, the Hamburglar. Only time will tell if these upgrades will have a lasting impact on McDonald’s sales and customer satisfaction.
