In this file:


·         McDonald's Takes a Page from the Starbucks Playbook

… LTOs have included the famed McRib, a sandwich that gets brought back to select locations randomly…


·         JPMorgan cautious on McDonald's in near term



McDonald's Takes a Page from the Starbucks Playbook

Or maybe the restaurant chain is just bringing something to beverage marketing that it pioneered in food.


Daniel B. Kline, The Motley Fool 

Oct 5, 2019


Starbucks (NASDAQ:SBUX) has a robust lineup of seasonal beverage offerings. Some, like the pumpkin spice latte, come back every year; others may jump around the calendar or never be brought back again. It's a strategy that engages customers because these are limited-time offers (LTOs). Get them now or miss them for another year -- or maybe forever.


McDonald's (NYSE:MCD) pioneered this strategy in its food business. A novelty sandwich might be offered tied to a promotion, an event, or a season. Other LTOs have included the famed McRib, a sandwich that gets brought back to select locations randomly, and the McLobster, which has primarily been a summer offering in the Northeast.


Now, McDonald's has launched its first McCafe LTO in nearly five years. It's a smart play that breathes life into an area that the company has focused on, but which perhaps hasn't thrived as much as franchise owners would like -- especially after investing in the coffeemaking equipment.


Trying to lure McFans to McCafe


McDonald's has added the McCafe Cinnamon Cookie latte as a seasonal LTO. And it has brought back McCafe Donut Sticks, which were popular in their earlier run, this time adding a chocolate dipping sauce. They may seem like minor moves, but they are part of a broader plan to increase sales by changing the behavior of its customers.


A Starbucks customer, for example, might regularly visit in the morning. But a seasonal offer or time-based pricing deal could bring that customer in for an added visit. That's behavior McDonald's wants its customers to emulate, while also adding new visitors, according to CFO Kevin Ozan's remarks in the company's second-quarter earnings call.


"The convert strategy for us was always around opportunities in either other dayparts or other areas that we didn't have our fair share if you will," Ozan said. "So areas like coffee and snacking and areas that are potential further growth opportunities but we are not as strong in some of those areas, that wasn't necessarily taking some of our existing customers and just having them come more frequently. So there still are opportunities in some of those areas, again, like coffee and snacking."


A more nimble McDonald's? ...





JPMorgan cautious on McDonald's in near term

About: McDonald's Corporation (MCD)


By: Clark Schultz, Seeking Alpha

Oct. 1, 2019


·         McDonald's trades lower after JPMorgan lowers its same-store sales growth estimate to 5% from 6%.


·         The firm thinks McDonald's may have lost some traffic amid the increase of attention to the chicken sandwich battle between Popeye's, Chick-Fil-A and Wendy's. The introduction by Burger King of its alternative protein Impossible Whopper menu addition is also seen nipping at McDonald's sales.


·         "We still like MCD longer-term but...