McDonald's CEO Thinks He Could Bring Pain to These 5 Rivals That Sell Sandwiches
McDonald's Corp. (MCD) - Get McDonald's Corporation Report came to bring the pain. Sandwich chains, beware.
On a Tuesday, July 25, company earnings call, McDonald's CEO Steve Easterbrook said the fast-food giant is beginning to regain the customers it has lost over a "handful of years" to the growing consumer shift to digital and healthier eating, due in large part to new technology in its stores like self-ordering kiosks and innovative menu items,such as its Signature Crafted sandwiches.
"Our gain will result in pain being felt elsewhere," Easterbrook said in response to an analyst's question on competition.
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While Easterbrook failed to mention specific companies, he said McDonald's "gain" has "opened up [the competition] gap" among sandwich chains.
McDonald's Signature Crafted menu line includes the Maple Bacon Dijon burger made with 100% fresh beef (640 calories), the Pico Guacamole burger made with 100% fresh beef (580 calories) and the Sweet BBQ Bacon Chicken sandwich, made with Artisan grilled (640 calories) or crispy (810 calories) chicken.
McDonald's reported second-quarter earnings of $1.70 a share on revenue of $6.05 billion, beating Wall Street's estimates for earnings of $1.62 a share on revenue of $5.96 billion. Micky D's same-store sales for the period climbed 3.9%, compared to the 3.1% expectation.
Here are five fast-food companies that could feel the pain Easterbrook warned of.
