McDonald’s is feeling the pressure right now.Its earnings whiffed, the company says that same-store sales is “trending negative” and global economic conditions appear not to be improving anytime soon.
“That puts a lot of pressure on the new CBO sandwiches to succeed,” writes Scott Hume at Burger Business.
There’s a “new normal,” defined by heavy competition and uncertainty, that’s forcing McDonald’s to make moves to adapt.
And right now, there are a lot of eyes on McDonald’s latest limited-time offering, the Cheddar Bacon Onion — or CBO.
It’s adding higher-profit items like the CBO to offset the cost of budget items. The CBO also represents the first time McDonald’s is offering a premium sandwich has either Angus beef or chicken.
McDonald’s CEO Don Thompson explained on a call with analysts:
“We’re balancing our value messaging with premium menu news, including this month’s introduction of the Cheddar Bacon Onion sandwich, which is made with hickory-smoked bacon white cheddar cheese, caramelized grilled onions and creamy mustard sauce on top of a grilled or crispy chicken patty, or our Angus beef patty. The CBO as we like to call it was inspired by a similar entry in Europe.
This is the first time we’ve offered one sandwich with a choice of chicken or beef in the U.S. and we’ve seen that both have a high rate of extra value mill conversion and average check increase in our test markets. And in December, we’ll bring back the popular mackerel sandwich nationally. Local markets also continue to focus on beverages in an effort to generate additional consumer excitement.”
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