In an attempt to bring back customers to its U.S. restaurants, McDonald's Corp. MCD is launching menu items with special ingredients that are popular in certain regions of the country. The quick service chain is reportedly working to offer more locally popular menu items at its outlets, such as pulled-pork sandwiches in Indiana, bacon and white-cheddar Egg McMuffins in Chicago and cranberry-orange muffins in the Midwest.
Earlier, McDonald’s had offered local menu at its U.S. outlets, including mini bundt cakes, grits, chorizo burritos and a variety of muffin flavors. These items, however, were not made available nationwide.
McDonald’s menu innovation comes at a time when the chain is trying to counter the declining sales in the U.S. division. Comps at its U.S. division have been declining for the past few quarters. Meanwhile, other fast casual restaurants like Chipotle Mexican Grill, Inc. CMG and Panera Bread Company PNRA are now eating into its profits.
McDonald’s is trying hard to regain its previous position. The company is trimming complicated menus, speeding up service, testing customized burgers and sandwiches to competing with other popular restaurants and reinstate consumers’ confidence. In fact, just after his appointment as Chief Executive Officer, Steve Easterbrook announced plans to stop serving chicken treated with antibiotics at its U.S. restaurants within the next two years.
McDonald’s currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is Bravo Brio Restaurant Group, Inc. BBRG, sporting a Zacks Rank #1 (Strong Buy).
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