McDonald’s U.S. loyalty programme to go live nationwide in July
- McDonald's has been testing its loyalty programme in the U.S. since November 2020.
- Yum Brands, RBI, & Chipotle Mexican Grill also made similar announcements recently.
- McDonald’s wants to personalise customer experience with its U.S. loyalty programme.
On Tuesday, McDonald’s Corp (NYSE: MCD) said its U.S. loyalty programme will be officially launched nationwide on 8th July.
McDonald’s opened at $233 per share in the stock market on Tuesday and slipped to $232 per share in the next hour. This compares to its year-to-date low of $205 per share in the first week of March 2021 and multi-year low of $148 per share in March 2020 when COVID-19 pushed its worldwide restaurants into temporarily shutting down.
Yum Brands and RBI also made similar announcements recently
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The announcement comes after competitors, including Yum Brands’ Taco Bell and RBI’s Popeyes, launched similar programmes to retain digital customers gained amidst the Coronavirus pandemic. Also on Tuesday, peer Chipotle Mexican Grill said it wants to offer more rewards to members as it expanded its existing programme.
McDonald’s already has loyalty programmes in several countries, including France. In the United States, it started testing the programme last year in November. After gradually including more regions, it is now scheduled for a nationwide launch next month.
In April, McDonald’s reported $1.5 billion worth of digital sales in its fiscal Q1. The loyalty programme is aimed at further boosting online sales in the future. The NYSE listed company posted $5.12 billion of revenue for the first quarter and $1.92 of adjusted per-share earnings, both of which topped Wall Street estimates. It now forecasts roughly 15% growth in systemwide sales this year.
McDonald’s wants to personalise customer experience with its loyalty programme
McDonald’s loyalty programme offers 100 points to members on every dollar spent. Once they have sufficient, for example, 1,500 points, they can pay for a cheeseburger with them. To fascinate customers into signing up for the loyalty programme, the fast-food chain will offer 1,500 points to customers as a reward on their first order as a member.
McDonald’s also expects to personalise the customer experience with its loyalty programme. As per the Chicago-based company, members will be greeted by name in the drive-thru lane. After picking up what they ordered, they will also get a personalised email highlighting upcoming deals matching their taste. The loyalty programme, however, does not cover delivery, McDonald’s confirmed.
McDonald’s remained almost flat on average in the stock market last year with an annual gain of close to 2% only. At the time of writing, it is valued at $173.55 billion and has a price to earnings ratio of 33.81.