McDonald’s sales are soaring.
Sales at restaurants open at least a year jumped 6.2% globally, including a 5.4% increase in the US, for the first quarter. Quarterly profit rose 35% over the previous year.
“Our turnaround is taking hold,” McDonald’s CEO Steve Easterbrook said in a statement on Friday.
McDonald’s said that the launch of all-day breakfast in October and new McPick 2 promotions are driving the sales momentum.
Customers have long begged McDonald’s to make its breakfast menu available all day.
Since the launch, customers have been ordering breakfast-menu items on the side with their meals during lunch and dinner hours, driving up ticket prices during those times, Easterbrook said.
The McPick 2 promotions have also addressed a top complaint – that the McDonald’s menu didn’t offer enough value options.
The burger chain upset many customers two years ago when it reformulated the Dollar Menu by axing the $1 price ceiling and turning it into the “Dollar Menu & More” withitems that cost up to $5.
“Some of the challenges we’ve had in the US have been somewhat self-inflicted,” Easterbrook said during a conference call in July. “We moved away from the Dollar Menu and didn’t replace it with significant-enough value in the eyes of consumers.”
McDonald’s introduced McPick 2 in January. It letcustomers select two of the following items for $2: a McDouble, a McChicken, small fries, and mozzarella sticks.
In late February, McDonald’s raised the price of the promotion to $5. The new promotion let customers select two of the following for $5: a Big Mac, 10-piece chicken McNuggets, a Filet-O-Fish sandwich, and a Quarter Pounder with cheese.