Apparently people can’t wait to go to McDonald’s (MCD) to drink the coffee or “swill” as Starbucks (SBUX) Howard Schultz called it.
McDonald’s said Tuesday U.S. comparable sales rose 4.5% in August. Global comparable sales increased 8.5% in August, while systemwide sales for McDonald’s worldwide restaurants rose 14.1%.
What does McDonalds give the credit to? Value, Breakfast, Extended hours.
Value: A pinched consumer will NOT spend extra money on a indistinguishable commodity (for 95% of us) like coffee.
Breakfast: See Value
Extended Hours: While Schultz goes with gimmicks and closes stores in the middle of the day to train folks how to make coffee, McDonalds recognizes not everyone works 9-5. In response it has extended it hours making it even more convenient for customers to purchase goods from them. Novel idea.
What to look forward to? More of the same for both, that is good news for McDonalds shareholders and bad for Starbucks.
Disclosure (“none” means no position):long MCD, none
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One reply on “McDonalds Lapping the Field”
All I want for Christmas is a McDonald’s version of the Salad Oil Scandal. That is all.