The '2 for $5' offer was actually better in some cases.
When McDonald’s Corp. announced a buy-one-get-one for $1 promotion, fans likely cheered while investors groaned. But SunTrust Robinson Humphrey analysts say the promo isn’t quite the deal that either group thinks.
“In our view, the McDonald’s ‘buy-one-get-one for $1’ offer shows an effort to drive traffic, but also highlights McDonald’s focus on franchisee profitability, which should limit deeper value promotions going forward and help prevent an industry-wide reversion to a deep discount-oriented promotional environment,” the note said.
Other factors include the inclusion of fresh beef on the menu, faster drive-thru service and Happy Meal promotions that are making customers even happier, especially the ones with a Disney DIS, +2.23% theme. “The combination of innovation and technological enhancements are helping the company adapt to the changing definition of how guests view convenience,” the MKM note said.
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