McDonald's Corp. MCD reportedly announced that it will start offering table service and a customized menu in 600 restaurants in Southern California. Customers will be able to place the orders at the counter, which will be brought to their table by a server.
A personalized Taste Crafted menu of burgers and sandwiches will also be launched at these restaurants. This will offer guests the option to choose from beef, buttermilk crispy chicken, and artisan grilled chicken. Diners would also have a choice of buns such as sesame seed bun, potato roll, and artisan roll.
Consumers will also have four flavor blends to choose from, namely Pico Guacamole, Buffalo Bacon, Maple Bacon Dijon, and Deluxe.
Pico Guacamole – made of Pico de Gallo and guacamole, ranch sauce, white cheddar and lettuce and the Buffalo Bacon – containing blue cheese spread, spicy buffalo sauce, Applewood-smoked bacon, tomato and shredded lettuce – are spicy flavors.
The Maple Bacon Dijon has a sweeter taste and contains crispy bacon with maple seasoning, grilled onions, Dijon sauce, white cheddar and lettuce. The Deluxe flavor will combine the classical red onion, mayo, lettuce and tomato.
These programs come as McDonald's has been losing customers to fast-casual chains that offer a few items and allow diners to customize their food. Moreover, competition has intensified with restaurant chains, like Chipotle Mexican Grill, Inc. CMG, providing healthier options and fresh ingredients unlike McDonald’s’ processed food.
To Conclude
We believe that the declining same-store sales and shrinking base of young customers have compelled the world's largest fast-food chain to undertake these initiatives. Stiff competition and a few unwise decisions have slowed down service and affected comps in the domestic market.
This Zacks Rank #2 (Buy) company is diligently working to improve marketing and simplify the menu to survive in the highly competitive environment. The company is focusing on product innovation, a value menu and more limited-time offerings.
A couple of better-ranked stocks in the same sector are Carrols Restaurant Group, Inc. TAST and Shake Shack Inc. SHAK sporting a Zacks Rank #1 (Strong Buy).
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