McDonald's turns to McCafe brand to jolt customer growth

By Leia Klingel News FOXBusiness

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In an effort to attract more U.S. customers, McDonald’s (MCD) is offering higher quality fast food, delivery options and more value promotions.

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We're building a better McDonald's and more customers are noticing," CEO Steve Easterbrook said, according to the Associated Press.

The company looks to increase its customers through a partnership with UberEATS, curbside pickup and the continuation of a competitive value program focused on $1, $2 and $3 price points, plus deals throughout the year.

These changes were reflected in the company’s latest results, which showed that for the third quarter in the U.S., comparable sales increased 4.1%, “reflecting the national beverage and McPick 2 value promotions, along with the continued success of the Signature Crafted premium sandwich platform,” McDonald’s said in an earnings release.

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While the company did not give any numbers on the increase in demand for its McCafe brand products, executives noted that looking forward they are “excited” about coffee. “Coffee is a $30 billion business that is growing in the mid- to high- single digits,” they said on the earnings call, adding that coffee is a habitual purchase and can “convert casual customers to committed customers.” Executives touted on the call that the McCafe brand has already contributed to McDonald’s growth, and will be a platform for additional growth in the next few years.

McDonald’s released its latest quarterly results on Tuesday. The company earned an adjusted $1.76 per share, just short of analyst estimates for $1.77 per share, according to Thomson Reuters.

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