McValue Menu Launch
CHICAGO — After navigating significant hurdles in late 2024, including a devastating E. coli outbreak linked to their Quarter Pounder and a decrease in customer visits to fast-food establishments, McDonald’s Corp. is setting ambitious recovery goals for 2025.
The fast-food giant is now concentrating on winning over low-income consumers through its freshly launched McValue menu, rolled out in January.
This menu features appealing promotions such as buy-one-get-one deals for just $1, along with $5 meal choices.
Recognizing the current economic climate, McDonald’s President and CEO underscored the necessity of prioritizing value offerings.
With many low-income customers still grappling with reduced spending power, he stressed the importance of developing robust value propositions aiming to draw these consumers back, especially in the first quarter of 2025.
Financial Insights
In its fourth quarter of 2024, McDonald’s reported a net income of $2.01 billion, a slight decrease from the prior year’s $2.03 billion.
Earnings per share held steady at $2.80, despite an overall revenue decline from $6.40 billion to $6.38 billion year-over-year.
While revenues for franchised locations climbed to $3.95 billion from $3.86 billion, company-operated restaurants saw a dip from $2.47 billion to $2.31 billion.
In the U.S., total sales fell by 1.4%, although global sales saw a slight recovery with an increase of 0.4%.
Growth Strategies for 2025
As McDonald’s looks towards 2025, the company recognizes the prevailing challenges facing the restaurant industry, particularly in the U.S. and other major markets.
Nonetheless, McDonald’s is dedicated to its “accelerating the arches” strategy, with financial targets that reflect its revitalization efforts and a hopeful outlook for better economic conditions.
The company is projecting an operating margin in the mid-to-high 40% range, an increase from the previous year, largely driven by franchise performance.
For the entirety of 2024, total revenues reached a remarkable $25.9 billion, up from $25.4 billion in 2023.
Franchised restaurants generated $15.7 billion, while company-operated locations contributed $9.78 billion.
As part of its forward-looking strategy for 2025, McDonald’s plans to further expand its global presence by opening 2,200 new locations, marking a 4% growth from the prior year.
Approximately 25% of these new restaurants will be situated in the U.S. and within the company’s top five international markets.
Following the earnings report and the anticipated financial forecasts for 2025, McDonald’s stock experienced a notable uptick of 4.8%, rising to $308.42 per share.
This year holds special significance as it commemorates the 70th anniversary of McDonald’s and the 50th anniversary of its breakfast menu, reinforcing a legacy that continues to delight and offer value to customers.
Source: Foodbusinessnews