McDonald’s, navigating its way out of the pandemic, has predicted mid-single digit sales growth this year, according to CNBC.
The fast food giant’s sales strategy involves more collaborations with celebrities and adding more chicken to its menu, and also piloting a loyalty program in the U.S.
McDonald’s told investors it expects annual capital expenditures of $2.3 billion, half of which will be spent on building new restaurants, the report said.
The new locations will be around 1.5 percent to 2 percent of McDonald’s systemwide state growth in 2022.
But even so, the company also reminded investors of the ongoing uncertainty from the pandemic, saying the company would keep on evaluating its finances.
McDonald’s, according to CNBC, has been keeping track of the changing consumer behavior over the course of the pandemic, and will take action accordingly, including keeping core menu items and capitalizing on the surge in drive-thru orders.
And with digital sales doing well and expected to hit around $10 billion, the company plans to roll out “MyMcDonald’s” in its top six markets. That platform will bring together the company’s various tech investments such as the app and digital menu board. It will also come with easier ways for customers to order and pay for food.
McDonald’s intends to debut a loyalty program in Phoenix next month, CNBC writes.
And, McDonald’s will be working with automated drive-thru order-taking, drive-thru lanes only for digital orders and restaurants without any indoor dining options.
PYMNTS reported that McDonald’s had fallen short of expectations in the last quarter, making $5.31 billion where it had expected $5.37 billion.
The company annual report found global sales were down 1.3 percent, though U.S. comparable sales rose 5.5 percent.
CEO Chris Kempczinski said the downturn had come from a greater surge in off-premise dining during the pandemic, and the locations doing the worst were the ones focused on in-person dining.
— to www.pymnts.com
