A new product may appear near you somewhere on the miles-long menu at McDonald’s. The massive fast-food chain has begun experimenting with selling Krispy Kreme doughnuts. (Click here for brands that customers are abandoning.)
It is a frontal assault against Dunkin’, which sells doughnuts nationwide from its 9,468 stores. If the McDonald’s plan works, Dunkin’ has a problem. McDonald’s has 13,269 stores in America. It also has a much larger amount of foot and drive-through traffic.
Few people know Dunkin’s revenue because it is privately held. McDonald’s has revenue of $32 billion, which must be much higher.
The McDonald’s playbook to devour competition has been in place for decades. It adds to its menu and captures customers who come to its stores. It has partially flanked Starbucks, and it has undermined breakfast sales at several other midsized fast-food locations, such as Burger King and Chick-fil-A.
Get Our Free Investment Newsletter
McDonald’s was a destination for people who wanted lunch or dinner. It found that this capped its revenue. It pushed into the breakfast business. It also opened most of its stores 24 hours a day. It may lose money at 3 a.m., but it offers every potential customer service. This, in turn, engenders a level of brand loyalty.
CNBC summed up McDonald’s efforts: “McDonald’s saw its U.S. traffic increase in the second half of the year, bucking the industry trend thanks to its cheap deals. The burger chain has also been leaning into coffee — a common pairing with doughnuts —to encourage diners to visit more frequently.”
McDonald’s has carpet bombed the competition and will continue to do so.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Source: Read Full Article