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The Street
The Street
Business
Daniel Kline

McDonald's Makes Curious Menu Choices to Rival Burger King, Wendy's

Fast-food dessert hasn't evolved all the much over the past few decades. McDonald's (MCD) has its pies and some lackluster cookies while Restaurant Brands International's (QSR) Burger King has shakes, ice cream, its own lame cookies, and a Hershey's pie. Wendy's, of course, has its Frosty, which is somewhere between ice cream and a shake while McDonald's has shakes, ice cream, and the McFlurry (when the machine is working).

It's a pretty mediocre lineup that rarely gets the same attention as the core menu at any of the chains. Yes, Wendy's has experimented with Frosty flavors and even Frosty sundaes, while McDonald's sometimes rolls out a limited-time-offer McFlurry, but it's generally a menu part that hasn't received a lot of attention from any of the big three burger chains.

That's surprising because dessert can drive checks higher and they're relatively cheap items sold at very high markups. You can also make some desserts in advance and they can be stored for longer than say a hamburger or a chicken sandwich.

Now, however, at least one major McDonald's menu has three new dessert items -- two of which might make sense as global editions.

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McDonald's Brings a Unique Flavor, Color to a Shake

McDonald's has been more aggressive in offering new desserts outside the United States. It's continuing that plan in Finland where it has added one shake that Americans may find a tad odd, Brand Eating reported.

The Licorice Shake uses the fast-food giant's shake mix and adds licorice flavoring,. That results in a dessert drink that the website described as "a drab gray color that brings to mind a dystopian food of the future."

And, while in this case Soylent Green (or grey as it is) is not people, the Licorice Shake has less global potential than the next item McDonald's Finland has added.

"The Monster Freak Shake is inspired by Sesame Street's Cookie Monster and features a cookie-flavored shake with a swirled blue color, topped with whipped cream and crushed Oreos," Brand Eating shared.

And while this concoction might not be as decadent as many freak shakes are (many have a slice of cake or a whole Rice Krispy treat on top) it's still a colorful, perhaps enticing addition to the menu.

The last item, the Lazy Sundae Deluxe, does not use the Dijonnaise sauce from the discontinued Arch Deluxe burger. Instead it's vanilla soft serve topped with strawberry-lime sauce, meringue crumbles, and whipped cream.

McDonald's Has a Plan for Global Dominance

"Our global system is aligned behind a comprehensive strategy that is centered on the customer. This is strengthening our brand, which is driving broad-based market share gains," said McDonald's CEO Chris Kempczinski during the company's second-quarter earnings call.

In addition to menu innovation, the fast-food giant has been investing in technology.

"The investments we're making in digital, one of our biggest opportunities for growth, are beginning to bear fruit. In our top six markets, digital sales, which include mobile app, kiosk and delivery, represented over $6 billion or nearly 1/3 of system-wide sales in the second quarter," he added.

McDonald's has been able to leverage its app/rewards program to learn more about its customers.

"Each reward a customer redeems and each preference a customer shares helps us power our personal touch," Kempczinski said. "We can use this deeper understanding of our customers to create content and offers relevant to them through the channels they prefer. By tailoring messages, our customers feel more connected to McDonald's, ultimately driving engagement that increases both spend and frequency."

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