Riding Sales Wave, McDonald's Intros New Premium Salad

McDonald's rode its Snack Wraps to an exceptional 8.2% global sales increase in March, and will introduce a new premium salad this week just as a report on quick-serve salads comes out that says the segment is showing strong growth, particularly among ethnic versions such as Mediterranean, Asian and Southwestern.

Comparable sales or sales at stores in business for at least 13 months were up 6.2% in March (4.4% for the quarter) in the U.S. and up an astounding 11.2% (8% for the quarter) in Europe--one of the segment's highest monthly comparable sales results in history.

McDonald's is introducing a premium southwestern salad that includes, a spokesperson says, "warm, cilantro-glazed chicken, grilled or crispy, greens, oven-roasted tomatoes, poblano peppers, black beans, fire-roasted corn, crunchy chili-lime tortilla strips and shredded cheddar with Newman's Own Creamy Southwest dressing."

Premium salads are paying off for the quick-serve industry, says Technomic Information Services, which has been tracking the industry for more than 40 years. In its "Salad Category Report," the consultancy notes that "consumers were more likely to consider quick-service ahead of quick-casual restaurants as a viable source for salad, especially at lunch, although full-service casual-dining operators still dominate all other categories as a top-of-mind resource for salad."

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"At lunch, consumers are frequently focused on convenience, but still want high quality at a lower price," says Darren Tristano, executive vice president of Technomic Information Services, in a release. "The quick-service players have been highly successful in delivering on that formula."

The report also notes that ethnic trends are among the most striking in the salad category. Southwest, Asian and Mediterranean-influenced flavors have been displacing previously popular flavors like Cajun and Buffalo seasonings. Blue and other strong cheeses are becoming increasingly popular at all types of restaurants and across all price points, it says.

McDonald's reported comp sales in February were up 5.7%. A spokesperson attributes the company's steady gains to the success of the Snack Wrap--"one of the best product launches we've had in three years"--flour tortilla wraps that hold crispy or grilled chicken, cheddar jack cheese, lettuce and sauce, and which "continue to perform well for us."

She also credits Happy Meals and the dollar menu--particularly the dollar breakfast menu--which franchisees can vary to suit local tastes. "We just had a soft launch of our Cinnamon Melt, which is doing six to eight times higher sales than our cinnamon roll," she says, explaining that the melts are a "pull-apart sweet roll with a warm cinnamon-sugar glaze" and are available all day.

The sales spikes, she says, also speak to the "strength of the premium coffee line. Forty percent of coffee sales are made with a pastry, a donut or a muffin." The melt was available in 11,000 of the 13,700 McDonald's restaurants nationally in March.

The spokesperson also credits extended hours for the sales increases--adding that 95% of franchises have some kind of extended hours, opening before 6 a.m. and closing past 10 p.m. "About 30 percent are open 24/7," she says.

Information on upcoming marketing plans was unavailable on Friday.

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