McDonald’s loyalty program increases digital sales
McDonald’s Corp. has seen a further acceleration of digital sales through a reward program.
During an April 28 earnings call, President and CEO Christopher J. Kempczinski stated, “Digital sales, which include mobile apps, kiosks, and delivery, made up more than 30% of system-wide sales in the first quarter.” This is an increase of about 60% in the last 12 months.
“In the first quarter, we generated nearly $2 billion in digital sales in the US alone. Our global loyalty program, MyMcDonald’s Rewards, is one of the main forces behind our adoption of digital technology. We are able to better serve our clients’ requirements and develop more genuine, intimate relationships as a result.
When compared to the same period last year, McDonald’s, a Chicago-based company, had a 12% gain in global comparable store sales in the first quarter that concluded on March 31. In the US, there was a 3.5% gain.
According to Kevin M. Ozan, chief financial officer of US comparable store sales, “strong marketing campaigns across loyalty, value bundles, and our Crispy Chicken Sandwich delivered incremental sales and continued to drive digital adoption.” “Higher average check, driven by strategic price increases, continued to be a significant growth driver.”
The international-operated markets category saw a 20% increase in comparable store sales, while the international developmental licensed markets segment saw a 15% gain.Mr. Kempczinski stated, “Our customers in the UK can now order delivery directly on the McDonald’s app.” Later this year, we intend to extend that capability to the US, Canada, and Australia. By doing this, we will be able to better manage the delivery experience for our most devoted clients and discover, in the end, more abouthow we create more seamless, memorable and personalized experiences.”
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McDonald’s first-quarter net income dropped by 28% to $1.10 billion, or $1.48 per share on common stock, from $1.54 billion, or $2.05 per share, in the same quarter the prior year. To $5.67 billion, revenues increased by 11%. The first quarter of the previous year saw a roughly 8% increase in pricing.
Significant labor and commodity inflation hurt our company’s operating margins, as was to be expected, Mr. Ozan stated. “We anticipate that these elevated inflationary pressures will persist throughout this year, given the macroeconomic conditions.”
He said that for the fiscal year, McDonald’s management anticipate a 12% to 14% increase in commodities prices.On April 28, McDonald’s stock price on the New York Stock Exchange finished at $254.19 a share, up 2.9% from the previous day’s close of $247.14.