OAK BROOK, Ill. -- Ever since it adopted a strategy in 2003 that focuses on improving existing restaurants and adding new menu items, McDonald's Corp. has been on a roll, reported the Wall Street Journal.
Even during the latest economic downturn, its growth barely slowed, and in the third quarter, its revenue and profit exceeded analysts' expectations. McDonald's shares are up more than 63% in the past three years, and many analysts expect its stock to break $100 soon, said the report.
The company posted its 103rd month of positive global same-store sales.
The Oak Brook, Ill.-based fast feeder is leaning heavily on emerging markets such as China for new-restaurant growth. The company last week reported that its Asia/Pacific, Middle East and Africa division posted the strongest same-store sales growth last month of all its business units, with sales up 8.1% from the year before.
The company cited "compelling customer conveniences" as one of the growth drivers at work. Delivering food by motorbike is one of those conveniences in countries such as China, Egypt and South Korea. Another is adding dessert "kiosks," or windows on the exterior of existing restaurants where pedestrians can order an ice-cream cone, bypassing the lunch line inside.
All over the world, the company is updating its restaurants, modernizing the decor and adding amenities such as free Wi-Fi and flat-screen televisions, the report said. It has also extended restaurant hours to attract customers who don't dine during the traditional work day, and added double-lane drive-thrus to get more customers through the line more quickly.
Domestically, McDonald's is taking advantage of Americans' proclivity to graze by offering snack items such as chicken wraps and small desserts throughout most of the day. That allows the chain to attract customers during the otherwise slow periods between breakfast, lunch and dinner.
The company also has added a slew of new menu items that are priced relatively high, low and in-between to appeal to a broad swath of consumers, said the report. That enables the chain to appeal to everyone from the traditional fast-food junkie who loves burgers to salad-chomping moms and the employee on the go who wants to grab a bowl of oatmeal for breakfast.
Meanwhile, the high-margin items, such as strawberry lemonade, fruit smoothies and fancy coffee drinks, have protected profits by offsetting cheaper items such as $1 hamburgers.
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