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McDonald's Shifts Strategy with Bigger Burgers and Value Deals

restaurants

By Penelope W.

- Aug 4, 2024

McDonald’s, the famous fast food franchise, recently encountered a rough quarter. A downturn in global sales, the first in four years, was unveiled during the second quarter of this year. The decline is attributed to customers growing increasingly weary due to the constantly inflating prices of burgers. The downturn led the CEO, Chris Kempczinski, to propose a "comprehensive rethink" of McDonald's pricing, coupled with an alteration to the fast food giant's value strategy.

In addition to these adjustments, the McDonald’s team are considering offering customers larger burgers. Kempczinski explained the corporation's plan to present the "Big Arch" burger to the menu. The new addition, he described, will consist of double patties, melted cheese, "crispy toppings," and a "tangy McDonald's sauce."

Currently, this larger burger is undergoing testing in selected markets outside of the United States, including Canada and Portugal. The corporation is keeping a close eye on the introduction and reception of the burger in these areas for a few months before concluding whether to present it globally, with the U.S being a potential market.

In an intriguing twist to the process, this burger will not be adapted or changed to cater to the tastes of each market, straying from McDonald’s usual approach. Instead, the product will possess a global appeal - that is if it successfully passes the testing stage.

As McDonald's website for Portugal (the reporter's location) elaborates, this burger will contain two patties, three pieces of white cheddar cheese, pickles, lettuce, fresh and fried onions, and an all-new "divine" sauce. A layer of cheese will be neatly tucked between the patties, while the fried onions will form the base and the fresh onions sit atop, topped off with a generous smear of sauce on the top bun. The Portuguese McDonald's website labels the new delicacy as "Um verdadeiro Épico Mac," translating to "a true epic Mac."

Additionally, McDonald's patrons can look forward to more value deals in the times to come, including the continued availability of the $5 Value Meal, as McDonald’s adjusts its strategy. Kempczinski assured investors that while McDonald's is still recognized as a value leader by consumers, they are prepared to work to increase the value gap with their competitors that has recently shrunk.