McDonald's Going Healthy by Adding Kale to Menu? - Analyst Blog
McDonald's Corp. MCD is reportedly planning to add kale to its menu offerings this year. The leafy green vegetable, which has gained immense popularity in recent years, could be used in salads, smoothies and Big Macs.
The demand for kale keeps growing as health-conscious customers are opting for the fibrous, nutrient-rich vegetable. According to USA Today, kale currently features on 400% more restaurant menus than it did five years ago.
Health consciousness is increasing among the masses and Americans are gradually refraining from energy-dense food high on fat and sugars but low on vitamins, minerals and other micro-nutrients. As a result, the demand for healthier food is growing. So kale might be McDonald's’ ticket to reverse the trend of declining comps at its restaurants. The company’s February comps fell 1.7%, with U.S. comps declining 4%, despite better weather, lower gas prices and an improving economy.
Of late, McDonald’s has been experiencing sluggish comps partly due to heightened competition from fast casual restaurants like Chipotle Mexican Grill, Inc. CMG and Panera Bread Co. PNRA, due to their more customized and healthier offerings.
Last week, McDonald's announced that the chickens served would only be injected with veterinary antibiotics. The company also announced that it will begin to offer low-fat white milk and fat-free chocolate milk that come from cows not treated with artificial growth hormones. (Read: Will Antibiotic-Free Chicken Revive McDonald's Fortunes?)
in addition to the shift to healthier menu options, the company has taken other initiatives to reinvigorate sales. From trimming complicated menus, speeding up service, testing customized burgers and sandwiches to competing with other popular restaurants, the company is leaving no stone unturned to regain consumers’ confidence in all its key operating regions and counter competition.
However, it remains to be seen as to when these initiatives turn the fortunes of this Zacks Rank #4 (Sell) company around. Meanwhile, investors may take a look at another restaurateur BJ's Restaurants, Inc. BJRI sporting a Zacks Rank #1 (Strong Buy).
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MCDONALDS CORP (MCD): Free Stock Analysis Report
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