Saturday, 20 April 2013

Dollar Menu fails in profits: Will McDonald's do away with $1 offerings

Dollar Menu fails in profits: Will McDonald's do away with $1 offerings, McDonald’s failed to lift sales with its Dollar Menu, even though they made a higher profit for their first quarter, it wasn't due to the discounted Dollar Menu. The company reports that an important sales measure fell 1 percent during the same period and McDonald's expect more of the same for April, according to The Post and Courier on April 20, 2012.

This is the first time in a decade that McDonald's had a quarterly decline in sales for restaurants that have been open 13 months or more. Does this mean McDonald's will do away with the Dollar Menu? No, it was decided by the powers who be that cutting the Dollar Menu in this economy is not something they would be willing to do. This is good news to McDonald's customers.

The competition has been stepping up their marketing over the past year and McDonald's responded with the Dollar Menu savings along with other deals. As Wendy's and Burger King enticed customers into their restaurants with commercials and ads, McDonald's counted on the value customers received from the Dollar Menu to trump the competition's advertising.

It sounds like their new line of attack is to get their competitors customers to switch fast-food restaurants. McDonald's executives said in a conference call with analysts on Friday, that they couldn't do away with the Dollar Menu because it was "necessary in the current climate." Analysts suggest since the restaurant industry is barely growing, McDonald's needs to steal customers away from the rivals in order to grow.

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