The more detrimental item available at McDonald’s this year was actually an entire menu: the Dollar Menu and More.
Financial blogger Asit Sharma singled out the value menu as the worst of McDonald’s offerings in a post on The Motley Fool, because of its inability to give customers a bargain while also generating sales for the company.
“McDonald’s ‘Dollar Menu and More’ was spread over too wide a price point range to create a win for both customers and the company,” writes Sharma.
The Dollar Menu and More was introduced two years ago, as it became clear the burger chain’s famous dollar menu was no longer profitable. The new value menu was intended to engage value-minded customers, while also pricing items in the sweet spot of $2 to $5.
Fortunately for McDonald’s, the company realised the failure of the Dollar Menu and More, and is nixing the menu in January. In its place, the company is debuting the “McPick 2” menu, which allows customers to pay $2 for two of the following items: small fries, a McDouble, a McChicken, and mozzarella sticks.
“[McPick 2] will succeed if customers add on other items (like high margin soft drinks) to orders, and if it wins repeat visits,” writes Sharma.
However, 2015 wasn’t all bad news for McDonald’s. Sharma says that the best thing McDonald’s released this year was also a group of items: the all-day breakfast menu, which he says had immediate and potentially long-term impact on the company’s revenue and earnings.
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