McDonald's digital sales top $6B across top 6 markets

Dive Brief:

During Q2, McDonald’s digital sales topped $6 billion in its top six markets representing roughly one-third of systemwide sales for these segments combined during the period, CEO Chris Kempczinski said Tuesday on an earnings call with investors. Digital sales, which include mobile app, kiosk and delivery orders, currently make up about a quarter of total McDonald’s U.S. sales, he said.
The chain now has loyalty programs in nearly 50 markets, including all of its top six divisions. MyMcDonald’s Rewards launched in the U.K. this month, and the U.S. recorded nearly 22 million active loyalty members in the last 90 days, Kempczinski said.
There is still room for U.S. digital sales growth based on the performance of Germany, France and the U.K., where digital makes up over half of sales, and China, where digital represents over 80% of sales, Kempczinski said.

Dive Insight:

Digital sales growth in the U.S. will drive a rise in the percentage of identified customers, which opens doors to a range of new service and pricing opportunities, Kempczinski said.

The chain has begun to see the benefits of digital investment domestically, he said, adding that Kevin Ozan, who was promoted from CFO to senior executive vice president, strategic initiatives in June, will help him develop a plan for the next phase of McDonald’s digital business. The chain’s rewards offerings have resulted in more frequent visits and incremental sales in each market where such programs have launched, he said.

“Each reward a customer redeems and each preference a customer shares helps us power our personal touch. We can use this deeper understanding of our customers to create content and offers relevant to them through the channels they prefer,” Kempczinski said. “By tailoring messages, our customers feel more connected to McDonald's, ultimately driving engagement that increases both spend and frequency. It even means we can reunite with customers who haven't visited us in a while.”

McDonald’s has been investing in mobile-driven marketing solutions to drive digital engagement, particularly among Gen Z consumers. Last month, the company launched a virtual summer camp experience on its mobile app that includes deals, menu hacks and programming exclusive to the app. The marketing play builds on past innovations around celebrity-inspired Famous Orders, which helped grow mobile engagement.