McDonald’s Corporation (MCD) just announced that it has pulled McWraps from its U.S. menus — and this news is even better for customers than it is for shareholders.
Anything that makes more room for all-day breakfast and menu items people actually want to eat is a win-win for MCD stock.
McDonald’s has been getting out the wrap business since last summer and apparently no one complained, so why not stick a fork in it? Only the Ranch Snack Wrap will remain on the menu and even then only in some markets.
Good riddance. Premium McWraps were kind of a dud from the beginning and belong to the dark ages of MCD’s history known as “before breakfast.”
Try as it might, no menu innovation could arrest the chain’s revenue slide and revive its moribund share price until it launched all-day breakfast. Indeed, since McDonald’s introduced ADB six months ago, MCD stock is up 30%. As for the rest of the market, it has gained 8%.
But MCD can’t afford to rest on its laurels, and it can only squeeze so many new items on to the breakfast menu anyway. That’s why it’s time for McDonald’s to make some daring additions to the traditional menu.
If McDonald’s wants to keep its current mojo going once the novelty of ADB wears off, it needs to debut these five killer foods:
Cheese Fries
C’mon, does this even need to be said?
First, McDonald’s fries have long been tops among the old-school burger chains. (Wendy’s (WEN) Biggie Fries are a close second.) Even Julia Child liked MCD’s fries.
It’s well past time to leverage this beloved side. Americans love food when it’s suffocating under or suffused with melted cheese. We’ve even figured out how to put cheese inside the crust of a pizza. Slathering it on fries is child’s play compared to that kind of technological innovation.
Best of all for investors, cheese fries could be a jumping-off point to an entire category of items if MCD offered toppings. From bacon to broccoli, there would be something for everyone.
Sriracha Anything
For decades, spicy sriracha sauce sat lonely and ignored on the tables of Vietnamese restaurants. But then a few years ago, it became a superstar.
If you like spicy food, sriracha is one of the most delicious ways to add zip, as an increasing number of Americans are discovering. Back when sriracha broke onto the scene, it was noted that hot sauce was one of the nation’s fastest-growing industries. Sriracha was one of its stars.
MCD could add the spicy condiment to existing food items and launch new ones to feature the flavor. McNuggets, Sriracha cheese fries, popcorn shrimp — another item that’d be great to see.
The opportunities are endless.
Corn Dogs
You can never find a corn dog when you need one. Well, that is unless you’re at a county fair.
But Mickey D’s could become the go-to place for this American classic … thing.
These little hot-dogs-on-a-stock possess three of America’s’ most favored food traits — they’re fried, crunchy and portable. And anything you can easily eat with one hand is sure to be a hit at the drive-thru. There’s even a way to stick cheese in there.
They’re also an excellent delivery system for sriracha sauce.
Sliders
For reasons that elude scientists and philosophers, hamburgers taste better when they’re tiny. White Castle learned this lesson a long time ago, and now it’s time for MCD to kick them off their arrogant perch.
There’s just something supremely satisfying about ordering a sack of burgers. It also takes away the need to make decisions. Trying to decide between a Quarter Pounder and Big Mac? Have both in slider form! Throw in a Bacon Clubhouse Slider too.
And in a nod to America’s new-found obsession with healthier fast-food fare, MCD could market sliders as having fewer calories than regular-size burgers. Portion control is the next big thing in nutrition, but don’t worry, McDonald’s. You can’t eat just one slider. No one can.
Shamrock Shake
The thing that makes the Shamrock Shake special is that it’s only available around St. Patrick’s day.
McDonald’s needs to cut that out.
This isn’t a McRib situation, where sinister theories circulate about the elusive sandwich distorting pork prices. It’s just a simple milkshake. True, some might miss the beverage’s association with the Irish-themed holiday, but it was always a poor treat for such revelry anyway. Where’s the booze?
McDonald’s would likely have to rebrand the Shamrock Shake to make it work as a year-round menu item, but true connoisseurs will follow that minty flavor anywhere.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
