The Globe and Mail reports in its Wednesday edition that discounts alone were insufficient to attract price-conscious diners in McDonald's second quarter. A Reuters dispatch to The Globe reports that the best-performing brands combined bargains with menu innovation, quality enhancements and improved customer experiences. The approach helped chains such as Yum! Brands' Taco Bell attract budget-conscious consumers without resorting to blanket discounting across their menus. Value succeeds when it is "really clear and simple" and does not feel like a "bait-and-switch," said Connections' Rachel Royster. Taco Bell reported a 7-per-cent rise in same-store sales in the quarter, while global comparable sales at McDonald's rose 1.3 per cent. McDonald's struggled despite its under-$3 (U.S.) menu and a $4 (U.S.) breakfast meal. McDonald's said loyal customers accounted for about two-thirds of the traffic shortfall and blamed execution rather than strategy.
Other chains found that promotions did little to offset pressure on lower-income consumers. The quarter showed restaurants don't need to be the cheapest to thrive. Restaurant Brands' Burger King achieved strong sales growth thanks to promotions like "2 for $5" and "3 for $7."
© 2026 Canjex Publishing Ltd. All rights reserved.