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McDonald’s franchisees are more optimistic than they’ve been in years

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Franchisees of McDonald’s have never been so happy even though coronavirus has sent many key fast-food chains into a loss.

McDonald’s quarterly survey by Kalinowski Equity Research found that the franchisees who are operating 95 percent of the locations in the US are more than optimistic than they were 17 years ago. The fact of the matter is that their business outlook so close to the survey conducted 17 years ago way back in February 2004.

It was reported by McDonald’s last week that its comparable sales were up by 4.6 percent in the third quarter, before releasing its full quarter sales on November 9. Kalinowski predicts that its comparable sale sales will grow by 5.6 percent in the United States in the fourth quarter.

The reason for this McDonald’s success was contributed by its Travis Scott and J Balvin meals, and the sales of spicy chicken nuggets also contributed to its success the Kalinowski said. 20 of the franchisees were surveyed and all of them presented with different success story reasons for the success and optimism. Which includes:

  • Increase in demand
  • Increased momentum of sales, which is a result of cool weather which made the restaurants to close their doors and open up the drive-thru which would eventually increase the sales of the restaurant.
  • Celebrity platters, dining in its competitor is close, menu prices increased

Mcdonalds is thriving as the overall industry suffers

Some franchisees state that they are making good business just because the other restaurants are closed, the other restaurant’s customers are now paying for the McDonalds.

During the Covid 19 days, the people are tired of eating at home, and many Mom and pop restaurants are closed, so they are driving the customers towards McDonald’s, one the franchisee told the newspapers.

Dennis Geiger a UBS analyst recently wrote in a note that roughly 20 percent of independent restaurants are expected to close while discussing with the private foodservice distributors. That means that 70 thousand restaurants across the United States will be closed.

Even when they are open the people will go to the McDonalds drive-thru to get their desired food and to avoid Covid-19. So by Drive-thrus McDonald’s will gain an upper hand over its competitors like the other restaurants.

People don’t want to cook at home every day so the people are tired of sitting at home, which will give a boost to McDonald’s over the other competitors, Kalinowski added.