McDonald’s Grimace Shake Trend Pays Off for Burger Chain

livemint.com:

Grimace delivered for McDonald’s. A meal celebrating the “birthday" of the retro purple mascot last month helped drive McDonald’s U.S. same-store sales up 10.3% in its second quarter from a year earlier.

Consumers trying the meal’s Grimace shake and then posting video clips of their reactions on TikTok translated into a surprising boost for the chain, according to McDonald’s. The burger company has outperformed many of its U.S. rivals this year with new marketing campaigns and a focus on core menu items such as burgers and chicken.

McDonald’s said menu price increases and more customer orders also helped boost its U.S. sales. Chain executives Thursday, however, said that the macroeconomic picture remains challenging around the world, with inflation hurting restaurant operators and customers.

Consumer sentiment hasn’t rebounded from prepandemic levels, the company said. “There continues to be a lot of pressure on consumers," McDonald’s chief financial officer Ian Borden told investors Thursday. Company shares were up 1.83% to $297.07 in Thursday morning trading.

McDonald’s said that it has benefited this year from U.S. consumers buying their fast food instead of going out for a sit-down meal but that some lower-income customers this year are ordering fewer items. Customer visits remain strong though, McDonald’s said.

Inflation is still high but starting to moderate for McDonald’s restaurants, the company said. U.S. prices remain elevated from before the pandemic after restaurants pushed through increases last year in response to escalating costs for food, materials and labor, McDonald’s said.