McDonald’s turns to $1 mozzarella sticks to win back customers

MCDONALD’S is rolling out a huge range of new menu items in an attempt to win back customers who have fled the burger chain.

Macca’s $1 trick to win customers

MCDONALD’S is hoping mozzarella sticks succeed where its Big Mac and fries have failed.

The burger chain, working feverishly to woo back the millions of American customers who fled the chain in the third quarter, said Tuesday it will add mozzarella sticks (three for $US1) to menus at its 14,000 US restaurants.

The company is also test-marketing lobster rolls, chorizo breakfast bowls and made-to-order salads at additional locations.

The new foods are part of the fast food company’s turnaround plan — which chief executive Steve Easterbrook said on Tuesday is beginning to take hold after posting same-store sales declines for years.

“We are regaining momentum, and our turnaround blueprint is working,” Easterbrook said.

It won’t be easy. Americans have been opting for healthier fare — leaving behind their parents’ favourite brands, like McDonald’s, Coke, Pepsi and Campbell’s Soup.

McDonald’s Mozzarella Sticks.

“We will win with our food,” said Mike Andres, president of McDonald’s USA.

All Day Breakfast, launched in October, has boosted sales in the fourth quarter, but Easterbrook warned investors not to “read too much into that”.

The Illinois based company also announced a plan to increase its debt by $14.15 billion ($US10 billion) to $42.44 billion ($US30 billion) to fund cash returns to its shareholders.

Exemplifying the tenuous nature of the turnaround, S&P immediately cut McDonald’s corporate credit rating one notch, to BBB+.

“We believe this approach marks a significant and rapid shift in financial policy for the company,” the credit-rating agency said.

McDonald’s shares closed Tuesday at $US113.29, up 36 cents. They have rallied 24 per cent since late August.

This article originally appeared on New York Post and was reproduced with permission.