This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

McDonald's Uses Ronald to Beef Up Its Social Media Presence

NEW YORK (TheStreet) -- Can fast food thrive in the fast-moving world of social media? McDonald's (MCD - Get Report) has taken steps to expand its presence in social media using mascot Ronald McDonald.

As part of its announced campaign to spruce up its 51-year-old icon, McDonald's has launched #RonaldMcDonald on Twitter to exploit "the magic and happiness of the McDonald's brand."

According to a company release, Ronald McDonald "will take an active role" on McDonald's social media channels around the world."

Ann Hould-Ward, theatrical designer for musicals including Beauty and the Beast, has created a new look for the old clown. He keeps his trademark red and yellow colors but gets a more hip look including yellow cargo pants and vest, red and white striped rugby shirt and, on special occasions, a new red blazer.

McDonald's is not new to social media but it hopes using Ronald McDonald boosts the brand and bring in some new customers. McDonald's has 2.3 million followers on Twitter and 30 million fans on Facebook, which places it well ahead of restaurant rivals. By contrast, Yum! Brands' (YUM) Taco Bell, which is taking on McDonald's using real-life Ronald McDonalds to push its own breakfast menu, has 1.2 million Twitter followers.

But will Ronald McDonald appeal to the targeted audience of millennials? McDonald's needs a boost in sales in the United States, a region where it has struggled lately.

In the first quarter, McDonald's reported a 1.7% decline in same-store sales in the United States. This compared to a gain of 1.4% in Europe and 0.9% in the Asia Pacific Middle East and Africa regions. Total revenue for McDonald's increased 1% thanks to the sales outside of the United States. Net income and earnings per share also fell in the first quarter.

In fiscal 2013, global sales increased only 0.2% at McDonald's. Despite the mediocre performance, shares increased 8% in 2013. Shares are currently at $100.45, up 3.5% for the year to date.

Ronald McDonald may not be the savior for McDonald's sales problems, but it shows the company is not clowning around when it comes to marketing and drawing in new customers.

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. >>Read More: Jim Cramer Says Be Patient on McDonald's Earnings - Video

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MCD $98.99 -0.29%
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs