McDonald’s has been performing well in recent quarters, outpacing its rivals and experiencing sales growth. However, the third quarter saw a decline in U.S. traffic as low-income diners reduced their visits. With analysts expecting modest growth in U.S. same-store sales for the fourth quarter, McDonald’s and other fast-food chains face the challenge of growing traffic in the coming year. Chains must convince customers that their food and drinks are worth the prices while also encouraging more frequent visits.
In an effort to improve its core burgers and provide a more flavorful product, McDonald’s launched its “Best Burger” initiative. The changes focus on small tweaks to the cooking and assembly processes, rather than altering the beef patty itself. The patties are now cooked with more breathing room, allowing for better flavor. The cooking process has also been adjusted to cook fewer patties at a time, enhancing the taste. Onions are added before cooking to absorb the patty’s juices, and the cooked patties are kept hotter for a warm and satisfying burger. Additionally, improvements have been made to the cheese, buns, and Big Mac’s special sauce.
McDonald’s began rolling out the better-tasting burgers approximately a year ago, and they have now been implemented at all locations across the United States. Some of the company’s key international markets, such as Australia and Canada, have already seen the benefits of the “Best Burger” initiative. These markets have outperformed others, partially attributed to the improved burgers. CEO Chris Kempczinski has stated that by the end of 2023, “Best Burger” will be available in 70 markets, with nearly all markets serving the upgraded burgers by 2026.
To promote the changes, McDonald’s has enlisted the help of the Hamburglar, a character dating back to the 1970s. In markets where the “Better Burger” is available, the chain aired a TV commercial featuring the mascot highlighting the improved taste. McDonald’s website also prominently features an endorsement from the Hamburglar.
While all of McDonald’s burgers have been affected by the changes, the quarter pounder received its own makeover in 2018 when the chain switched from frozen to fresh beef. This transition resulted in McDonald’s gaining market share in the burger category for the first time in five years. However, there are mixed opinions on whether the “Best Burger” initiative will have a significant impact on growth. Some analysts see it as a potential driver for future upside in 2024, estimating a 0.5% increase in overall sales. Others, however, are more skeptical, viewing the changes as part of an ongoing process to improve food quality.
Despite limited advertising at the local level, there are promising early signs that customers are intrigued by the improved burgers. Loop Capital analyst Alton Stump reported in May that “Better Burger” drove a 10% lift in burger transactions on average.
McDonald’s “Best Burger” initiative aims to enhance the overall burger experience for customers without compromising the core aspects that make their burgers popular. The changes have been implemented nationwide and have already shown positive results in international markets. While the impact on significant growth is still uncertain, early indications suggest that customers are responding positively. McDonald’s will need to continue focusing on innovation and quality improvements to maintain its position as a leader in the fast-food industry.
Leave a Reply