McDonald's Plans To Sort Its Menu Blunder

McDonald's is devoted to fix the flaws in its menu so it paves its way to redemption

McDonalds Corporation has been stumbling since a fairly span of time where the efforts of Mr. Steve Easterbrook – the Chief Executive Officer of the company have helped in regaining stability for them. The all-day breakfast introduction in the United States has actually done wonders for the company.  However, the worst offering that the fast food giant could come up with from the perspective of an investor is actually the complete menu- this includes the Dollar Menu offering and a lot more.

As per a renowned financial blogger, Mr. Asit Sharma claims that the value menu is one of the “most detrimental” menu offering that the company could come up with as per a post published on The Motley Fool. The reason behind the failure of this offering lies in the inability to offer customers with a good bargain and at the same time churning in sales for the fast food behemoth.

"McDonald's 'Dollar Menu and More' was actually covering a vast price point so that it could succeed in luring customers and in return churn in revenues for the company as stated by Mr. Sharma.

“McDonald's 'Dollar Menu and More” was launched two years ago since the company had already evaluated that its dollar menu was not churning in profits. The recent value menu offering was derived with an idea to get customers on board who had a tight budget. Moreover, items were priced between $2 to $5 so that customers of all spending brackets copula benefit.

McDonald’s has finally decided to bid farewell to its menu in January. As a replacement, the company has decided to come up with a "McPick 2" menu, which will allow the consumers to pay an amount worth $2 for any two items of the McDonald’s menu.

According to Mr. Sharma, McPick 2 will not be a success "if customers add on other items (like high margin soft drinks) to orders, and if it wins repeat visits."

Mr. Sharma is quite optimistic about McDonald’s growth and 2015 was actually not a bad year for the company. As reported by Business Insider, “Sharma said the best thing McDonald's released this year was also a group of items: the all-day breakfast menu, which he said had an immediate, potentially long-term impact on the company's revenue and earnings.”

Hence, the company can actually can further pave its way to redemption by coming up with better menu offerings. However, MCD should not really repeat the mistakes it has committed in the past.