McDonald’s officially stopped announcing how many burgers it sold in 2011 because it simply became too hard to track given the chain’s ubiquity and popularity around the world. Now we have a better idea of just how popular the Golden Arches are – at least domestically. A new report from consumer insights firm Numerator shows that 87% of United States households have visited a McDonald’s at least once in the past 12 months, as of June 30. The average customer visited 54 times and spent $461.
By comparison, 56% of U.S. households visited a Dunkin’ within that same timeframe, with 63% visiting two or more times. Dunkin’s average guest visited 21 times and spent an average of $174. Meanwhile, over 60% of households went to Starbucks. From those three chains, McDonald’s customers are 19% more likely to be from lower-income households, making less than $40,000 annually. Dunkin’ and Starbucks guests’ incomes tend to be higher.
That said, McDonald’s experienced some transaction erosion from lower income consumers earlier this year, resulting in a rare same-store sales decline in Q2. To win them back, the chain launched a $5 Meal Deal in late June and the plan seems to be working thus far. Data from Numerator finds that 20 million United States households tried the offering during its first three weeks and those buyers skew low-income.
This traction has also helped McDonald’s gain market share, according to Numerator. The chain’s total limited-service restaurant market share was up 0.5% in the four weeks ending July 14 versus the month prior, before the promotion. Restaurant chains that lost share to McDonald’s following its Meal Deal launch were Burger King (20%), Wendy’s (18%), Taco Bell (16%), Chick-fil-A (15%), Arby’s (9%), and Subway (6%).
What’s more, Meal Deal consumers have indicated the offering is driving incremental visits and 59% said they will eat at McDonald’s more often if it stays on the menu, while 40% said they would visit the same amount. The chain has already extended the promotion twice and it is now available into December. In a note released earlier this month, Evercore ISI analyst David Palmer said the chain’s value menu and incremental product news with advertising investments will lead to continued market share gains heading into the fourth quarter.
Contact Alicia Kelso at [email protected]
