McDonald’s (MCD), in an effort to re-ignite a stagnating business and win back the fickle consumer, will begin testing a lobster roll this summer at participating locations in New England. The crustacean dish will set patrons back $7.99, and will only be available at select restaurants in Maine, Massachusetts, Rhode Island, Connecticut and New Hampshire through mid-August.
The lobster roll value meal will cost $10.99.
At 290 calories, the dish is a lower-calorie offering than most of McDonald’s bigger-ticket items. The world-famous Big Mac sandwich has 530 calories and the Quarter Pounder with Cheese (or “Royale with Cheese” depending on what country you’re in) has 520 calories.
But don’t take the lobster roll as a sign that MCD is attempting to re-brand itself as a purveyor of slim, low-calorie offerings.
After all, it also just announced plans to increase the size of its famous Quarter Pounder; the new patty will weigh in at a pre-cooked 4.25 ounces, 6% heavier than its current 4-ounce weight.
So what can one take away from all these menu changes?
MCD is trying anything and everything to reverse a troubling multiyear same-store sales slump. Same-store sales measures the sales growth in locations open for at least a year, and it’s the restaurant industry’s most important metric.
For McDonald’s, that all-important metric has been really, really ugly.
U.S. same-store sales fell 2.2% in May, and 0.3% worldwide. The recent results have been so horrendous that McDonald’s is discontinuing entirely the practice of reporting monthly sales metrics after June’s numbers come out.
But it gets worse. For the first time in 40 years, and perhaps ever, the iconic fast food chain will close more U.S. restaurants than it opens this year, signaling pretty plainly that the Golden Arches have seen better days.
Incoming MCD CEO Steve Easterbrook, who took over for outgoing CEO Don Thompson on March 1, has his work set out for him. He’s starting with bigger burgers and seasonal lobster rolls. Let’s hope it works.
As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid or email him at editor@investorplace.com.
