Here’s How McDonald’s Can Benefit From Its Web Series?
Editor’s Note: Do you have an analysis request? Feel free to email content@trefis.com
Recently, McDonald’s (NYSE:MCD) launched a web series on YouTube called “Whats Cooking?” which will showcase the preparation behind some of its most popular food items. Through this series, the company is focusing on its food and the culinary process, an approach different from competitors who have not focused much on their brand in similar series. McDonalds also plans to highlight the changes it is making to its food items in the coming months, in line with the changing consumer expectations. We believe that as the company works on its turnaround strategy, focusing on “healthier” menu items, the right marketing strategy is critical to change consumer perception about its brand. The web series could become an interesting way to engage consumers and clear common misconceptions about its products, driving revenues in the long term.
See Our Complete Analysis For McDonald’s Corporation
- Looking Beyond The Golden Arches: Drop McDonald’s Stock, Pick This Conglomerate?
- Down 14% YTD, What Lies Ahead For McDonald’s Stock Following Q2 Earnings?
- Down 12% This Year, What’s Happening With McDonald’s Stock?
- Dropping 8% Year To Date, Will McDonald’s Stock Recover Post Q1 Results?
- What To Expect From McDonald’s Q4 After Stock Up 13% Since 2023?
- After A 14% Top-Line Growth In Q2 Will McDonald’s Stock Deliver Another Strong Quarter?
15% Upside To Our Price Estimate If Average Spending Increases Due To “Healthier” Menu
McDonald’s is looking to use its web series to show customers where its food comes from and how it is prepared in the company’s kitchen. According to the company’s spokesperson, it plans to showcase McDonald’s commitment to its food philosophy, Simpler is Better, through the series. The company is making several changes to its food menu to make it healthier, in line with preferences of the millennial consumer. Initiatives such as shifting from margarine to butter, piloting fresh patties, transitioning to cage free eggs, and removing preservatives from some of its food items are aimed towards this “healthier” shift. We believe that, through these initiatives, McDonald’s is positioning its food as “nutritious”. Hence, it is important to ensure that consumers perceive it that way. The video series can help change this perception by showcasing both the origin and preparation of its food and the healthier changes made in its menu in recent months. Healthier menu items can be priced higher than its regular menu and this can increase the average spend by a customer as a McDonald’s restaurant. According to our estimates, the average spend per customer visit at a McDonald’s franchised restaurant will remain fairly steady around $3.50 over our forecast period.
There can be a nearly 15% upside to our price estimate if this number increases at a rapid pace and reaches $4.00 by the end of our forecast period.
We believe that, as increasing numbers of consumers prefer healthier menu options, changes in McDonald’s food items to appeal to this consumer base will drive growth in the long term. This bold video series which details the process of making popular food items at the company’s restaurants can work as an important marketing strategy for the company. A web series that engages consumers and showcases these changes should amplify positive trends in consumer perception about McDonald’s food products.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap