Saweetie ’n’ Sour… Like its Saweetie-inspired sauce, McDonald’s latest earnings were a mixed bag. Sales were sweet: McD’s global revenue reached $23B last year, the highest in six years. Fun fact: Big Mac, McNuggets, and fries were 60% of total sales. Profits were sour: wage hikes + higher prices on everything from patties to paper bags ate into the bottom line. In 2021 McD’s hiked menu prices by 6%. Indulging in McDonald’s could get even pricier this year as the company expects ingredient prices to double.
Smooth like buttered McMuffin… Fast-food chains saw mid-pandemic sales jumps as cooped-up consumers hit drive-thrus to satisfy comfort cravings. McD’s pulled in record sales last quarter thanks to strong demand for Crispy Chicken Sandwiches and the newly revived McRib. But its secret sauce is tapping into consumer trends:
Customers are the best creators… From McD’s hack-inspired items to Starbucks’ “secret menu” lattes, fast-casual brands are leaning on social trends to determine their strategy. Even TikTok hopped on the bandwagon by launching a ghost-kitchen delivery service for viral meals. Fast-food brands are increasingly tuned into social (see: Wendy’s Twitter vs. Everyone), since they can skip focus groups by getting insights directly from customers.