When you think of fast food, it’s pretty much impossible to not picture those famous golden McDonald’s arches.
McDonald’s has a presence in neighborhoods, along highways, and just about anywhere you might imagine. And while it’s not exactly known as gourmet food, it’s kind of hard not to like a juicy Big Mac and side order of crisp, salty fries.
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But despite its popularity, things haven’t exactly been rosy for McDonald’s. During its most recent fiscal quarter, the company saw U.S. comparable sales decline 3.6% year over year.
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A big part of that could boil down to changing consumer habits.
Inflation has been stubbornly persistent, and it’s forcing people to change the way they spend their money.
Even though McDonald’s (MCD) is known for its relatively economical menu, it’s still cheaper to cook at home than to splurge on takeout, even of the fast food variety. So it’s not shocking to see a notable dip in sales.
Image source: Ezra Acayan/Getty Images
McDonald’s makes menu changes to win customers back
A company like McDonald’s could easily grow complacent and rely on its tried and true menu to keep customers coming through its doors. But it’s not like McDonald’s had been sitting back and trying nothing.
Instead, McDonald’s recently introduced a McValue menu featuring a $5 meal deal. The new menu also offers Buy One, Add One for $1 deals on breakfast foods and other popular items.
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McDonald’s has also been making strategic changes to its drink lineup. It recently announced that it will be introducing new beverages inspired by its CosMc’s spinoffs.
Plus, fans of the chain’s popular Snack Wrap can rejoice, because McDonald’s is also planning to bring McCrispy Strips to the menu. Though they’re not widely available yet, the plan is to make them available at most McDonald’s locations by the end of 2026.
McDonald’s pauses popular menu addition
While McDonald’s may be a well-known name in the burger, fries, and chicken space, it’s not exactly a hotspot for dessert.
Sure, there’s nothing like a tasty McFlurry to cool off on a summer’s day. But for the most part, McDonald’s falls pretty flat in the dessert category.
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For this reason, it made sense for McDonald’s to team up with Krispy Kreme to serve the chain’s famous doughnuts at select restaurants. The partnership was beneficial to both parties, allowing Krispy Kreme to boost sales while making it possible for McDonald’s to offer diners another sweet option.
McDonald’s has been serving Krispy Kreme (DNUT) donuts since late 2022. But there were plans in the works to offer those donuts on a national scale, with the goal of making them available at all U.S. McDonald’s locations by the end of 2026.
But now, Krispy Kreme has decided to hit pause on that rollout.
“The two companies partnered closely together to support execution, marketing, and training to deliver a great consumer experience. However, we are seeing, after the initial marketing launch, demand dropped below expectations,” said Krispy Kreme CEO Josh Charlesworth.
Charlesworth also said that Krispy Kreme and McDonald’s are “reassessing our deployment schedule together while we work to create a profitable business model.”
As of March 30, only about 2,400 McDonald’s locations had Krispy Kreme on the menu, leaving most of the chain’s 13,500 U.S. locations waiting for that addition.
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Of course, hitting pause on the McDonald’s rollout is likely to hurt Krispy Kreme more so than the burger giant. But it’s a big loss for McDonald’s, too.
At a time when sales are down and consumers need a reason to spend money at restaurants, keeping a beloved dessert off the menu could spell trouble for McDonald’s in upcoming quarters.
Thankfully, though, the chain has proven its ability to adapt and innovate its menu. And it certainly has the resources to pursue similar partnerships that could give customers a whole new reason to stop in.
