Sales for McDonald’s in Australia 7 per cent in 2023 despite pressures on fast-food chains
The fast-food giant is relying on its loyalty program, popular mobile app and cheaper menu items to keep diners coming back in the face of cost of living pressures.
The Australian arm of fast-food giant McDonald’s has lifted its revenue for fiscal 2023 despite cost of living pressures draining disposable incomes and cutting consumer spend on eating out.
McDonald’s confidence in the trading environment is such that it intends to spend $1bn on new stores and store refurbishments across Australia.
According to latest documents lodged with ASIC by McDonald’s Australia, its sales for 2023 rose 7 per cent to $2.144bn, which includes sales in its company-owned restaurants and rent income.
Total system-wide sales were around $7bn, which includes company-owned and franchisee restaurant sales.
McDonald’s Australia’s net profit after tax for 2023 was $253m, up 5.1 per cent on 2022, according to latest results lodged with the corporate regulator.
The company had previously announced plans to invest $600m in Australia, intending to open 100 new restaurants by the end of 2025 and reinvest a further $450m to remodel around half of its existing restaurants.
It has plans to open 35 new restaurants across Australia in 2024.
“Our commitment to providing great value for money and our relentless focus on delivering exceptional customer experiences underpinned our growth in 2023,” McDonald’s Australia boss Antoni Martinez said.
“When it comes to value, the relaunched Macca’s lunch and dinner Bundles (which grew 20 per cent year on year), our Loose Change Menu and the continued popularity of the MyMacca’s loyalty program were all key drivers of growth.”
There have been growing pressures on fast-food chains in the face of cost-of-living pressures and households pulling back on spending in cafes and restaurants. The New Zealand-based Restaurant Brands, which has 84 stores in Australia spread across fast-food chains KFC and Taco Bell, reported flat first quarter sales growth of just 1.4 per cent with same store sales down 2.7 per cent.
This week Woolworths chief executive Brad Banducci said he had noticed towards the end of March a shift in consumer spending away from dining out and to cooking at home as consumers looked to save money.
This is expected to hit fast-food stores as they battle for shoppers and try to maintain a downward pressure on their menu prices, but while also defending their profit margins from rising costs within their business.
Mr Martinez said McDonald’s was building customer loyalty and return visits to its store through its highly successful mobile app, loyalty program and menu innovations.
“My Macca’s loyalty program is now recognised as one of the top five loyalty programs in Australia, with 1 in 8 Aussies using the app in the past 90 days. Over the past 12 months, customers have redeemed more than 58 billion points and more than 14 million products, including 7 million McCafé beverages, 1 million large fries and 730,000 Big Macs,” he said.
“Additionally, our focus on chicken and the successful launch of our new core menu item the McCrispy, supported by a new campaign featuring the Kid Laroi during Grand Final Weekend, is paying off. McCrispy delivered significant growth in our total chicken burger portfolio alongside fan favourites including the McChicken and McSpicy.”
Mr Martinez said in what has been a challenging time for many of its customers, it is focused on providing them with great everyday value and exceptional service.
“We know our customers are watching every dollar they spend, which is why we’ll continue to earn their visits by doubling down on the things that matter most to them. Whether that’s great value Macca’s Bundles to feed the whole family, Loose Change Meals, personalised offers through the MyMacca’s loyalty program, or through exciting new campaigns like Surprize Fries, we will continue to delight and reward our customers.”
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