Article: New Dollar Menu Isn’t Helping McDonald’s | Bloomberg Businessweek
Three months since McDonald’s (MCD) relaunched its popular Dollar Menu as theDollar Menu And More, with options ranging from $1 to $5, the chain has yet to boost sales. McDonald’s reported today that same-store sales in the U.S. were down 3.3 percent in January, following a 3.8 percent decrease in December and a 0.8 percent drop in November.
Bad weather and an unexpected drop in consumer confidence worked against the chain in January. Traffic to U.S. restaurants was already down in the fourth quarter (which included about two months with the new menu) and down 1.6 percent for full year 2013.
The Dollar Menu and More aimed to give customers a “value ladder” based on their discretionary spending, Chief Executive Don Thompson said when it was launched. McDonald’s hoped it would increase traffic to stores, improve margins, and give the chain some pricing flexibility.
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http://www.businessweek.com/articles/2014-02-10/new-dollar-menu-isn-t-helping-mcdonald-s
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