McDonald’s Goes Digital, and Customers Love It

McDonald’s (NYSE:MCD) faced various struggles in early 2020. 

Among them was the COVID-19 pandemic, which forced the company to forego in-store services for a while. As expected, this made investors worry about McDonald’s future. Was this fast-food empire set to fall?

Lucky for us investors, the reality was just the opposite. The company implemented digital technologies that balanced out its needs with its limitations in no time. Fast-forward to 2022, and its latest quarterly report has shown growth figures at double-digits.

How Digital Sales Impacted McDonald’s

For the most part, McDonald’s implementation of digital media came in third-party food delivery services. This meant that the restaurant’s menu could now be found in mobile apps like Uber and DoorDash. 

This way, customers could still enjoy their favourite dishes without facing struggles of their own, which has become relatively common in fast food services nowadays, thanks to the pandemic.

For reference, 33,000 McDonald’s locations have now implemented this business model, and up to $18 billion of 2021s earnings were generated via this method. 

Moreover, its fourth-quarter report showed a 13% increase in revenue, while other chains were only able to increase by an average of 12.3%

What’s Next?

While most pandemic-based struggles are still ongoing, it goes without saying that digital sales have already proven their value. For every one of these issues that McDonald’s has to face, these sales do a great job balancing out the scales.

Because of them, McDonald’s earnings-per-share ratio now stands at $10.04, and its trading price has increased by 3%. In essence, this is the steadiest way McDonald’s can keep itself profitable, and you can’t compare its success to any of its competitors. 

So, if there’s a time to invest in McDonald’s, it’s today.