While there is some debate as to whether sweet and sour sauce originated in the Chinese province of Hunan before being popularized in a sweet and sour pork dish in Canton during the 18th century and beyond thereafter, let there be no dispute about the introduction of the sweet and salty McChoco Potato. The rollout date for the chocolate-covered french fry treat was January 26, 2016, and the place was McDonald’s restaurants across Japan.
For the price of ¥330 (approximately $2.80) Japanese customers are now able indulge in McDonald’s fries drizzled with two types of chocolate sauces: chocolate with cacao flavor and white milk chocolate. Consumers who don’t fancy it as a side dish to go with burgers, chicken or fish sandwiches may opt for it as a dessert selection.
This innovative, limited-time menu item is yet another creative variation on the McDonald’s french fry theme in Japan, which in the past has spotlighted Shaka Shaka Potato Fries topped with cheese sauce or bacon.
Meanwhile, in the USA the fast food chain has been promoting a limited-time McPick 2 for $2 offering since January 4. No, this is not a jackpot lottery to rival the popular Powerball game of chance. Instead it’s a doubling down version of the dollar menu in which in exchange for two bucks consumers may choose two of the following items: McChicken, McDouble (cheeseburger), small fries, mozzarella sticks (three pieces).
McDonald’s McPick 2 debut followed bundled bargain launches by rival quick service restaurant operators in the United States late last year. Among the meal deals is Wendy’s “4 for $4” special, which serves up a junior bacon cheeseburger, chicken nuggets, small fries and a small drink. Burger King offers a “5 for $4” menu pleaser featuring a bacon cheeseburger, four chicken nuggets, small fries, a small drink and a chocolate chip cookie.
Turnaround on Track, Says CEO
Meanwhile, McDonald’s reported on January 25 that global comparable sales rose 5% during the fourth quarter of 2015 to $6.341 billion, and 1.5% for the full year to $25.413 billion. However, foreign currency transactions hurt profits, and revenues for the quarter and year were down respectively by $231 million and $2.028 billion.
While the company’s overall performance in Q4, which ended on December 31, beat expectations from Wall Street stock analysts and other market watchers, it did not surprise President and CEO Steve Easterbrook.
“We took bold, urgent action in 2015 to reset the business and position McDonald’s to deliver sustained profitable growth,” he commented. “We ended the year with momentum, including positive comparable sales across all segments for both the quarter and the year – a testament to the swift changes we made and the early impact of our turnaround efforts. We enter 2016 committed to managing the business for the long term and aligned as a system around the critical imperative that we must run great restaurants each and every day for our valued customers.”
In the United States, fourth quarter same store sales increased 5.7%, benefiting from the all-day breakfast menu launch in October and, to a lesser extent, unseasonably mild weather in much of the country. Operating income for the quarter rose 30%, driven by positive comparable sales and a gain from the strategic sale of restaurant property.
Same store sales for the International Lead segment rose 4.2% in Q4, paced by strong results in the United Kingdom, Canada and Australia. Fourth quarter operating income fell 5% (though increased 8% in constant currencies), benefiting from higher franchised margins.
In the High Growth markets, fourth quarter comparable sales advanced 3%, reflecting positive performances in Russia and China. Operating income climbed 27% (45% in constant currencies).
Fourth quarter comparable sales rose 5.9% in the Foundational markets, fueled by broad-based strength in Asia and Europe. Operating income for the quarter was negatively impacted by strategic charges related to the company’s global refranchising efforts and weaker results in Japan. – Reported by John Saulnier
