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McDonald's announced a new "Big Arch" burger featuring two patties and tangy sauce, tested in select markets to combat declining global sales and revamp its value strategy.
McDonald's Global Sales Dip Sparks Launch of ‘Big Arch’ Burger, Testing Begins in Select Markets
McDonald's faces challenges as global sales fell in the second quarter for the first time in nearly four years due to inflation-weary consumers balking at rising burger prices. CEO Chris Kempczinski informed investors that this decline necessitates a "comprehensive rethink" of the company's pricing and value strategy, including introducing more giant burgers.
On July 29, Kempczinski unveiled plans for the "Big Arch" burger, featuring two patties, melted cheese, crispy toppings, and a tangy McDonald's sauce. Describing it as a quintessential McDonald's burger with a twist, he mentioned it is currently being tested in Canada, Portugal, and other international markets. The company plans to monitor the performance in these locations over the next several months before deciding on a broader rollout, potentially including the U.S.
According to Food & Wine, this test is unique because McDonald's aims to maintain a consistent version of the burger globally, deviating from the standard practice of market-specific adaptations. Ian Borden highlighted the importance of building global equity through a uniform product, unlike previous strategies where the company approached opportunities differently across various markets.
McDonald's Portugal Details ‘Big Arch’ Burger Ingredients, Expands $5 Value Meal to Boost Appeal
The McDonald's website in Portugal describes the “Big Arch” burger, which features two patties, three slices of white cheddar cheese, pickles, lettuce, fried and fresh onions, and a new “divine” sauce. The cheese is layered between the patties, and the onions and sauce are carefully arranged to create what the site calls “Um verdadeiro Épico Mac,” or a true epic Mac.
McDonald's focuses on more than just the “Big Arch” burger. As part of its recalibration efforts, the company also plans to offer more deals, including extending the $5 Value Meal. Despite being recognized as a value leader, Kempczinski acknowledged that their value leadership gap has narrowed recently. The company is not resting on its laurels and is working to address this quickly, demonstrating its proactive approach to maintaining its market position.
