Planet Retail's Take On Mcdonald's And Starbucks' Results

On McDonald's, Aisling Balfe, Retail Analyst, commented:
"The undisputed market leader in fast food, McDonald's, reported yet another strong set of results today. Sales have been buoyed by McDonald's huge share of the $57 billion US breakfast industry, enabling them to boast strong results across the entire 24-hour opening period. Since entering the breakfast market 40 years ago, McDonald's has continued to dominate the sector, having that crucial first mover status and staying ahead of the curve with new product innovation. In comparison, its major rivals Burger King and Wendy's still struggle to make a significant competitive impact in the breakfast market."

The 2012 Olympics will undoubtedly generate a further push towards McDonald's European operations, particularly in the UK, with the opening of the company's largest ever global store slated for the London Olympic park. Although the Olympics and related activity will drive significant growth in footfall, this will be short-lived with the real challenge coming the following year when sales expectations will continue to remain from the Olympic high, though momentum may not.


On Starbucks, Aisling Balfe, Retail Analyst, commented:

Later this week global coffee giant Starbucks is also expected to report positive results for its first fiscal quarter. Sales generated from the company's packaged coffee division will no doubt continue to impress following the transfer of CPG operations in-house after a high profile split with Kraft in 2010.

"In the US the Starbucks Card mobile application is another key factor behind Starbucks' success. The loyalty card has not only proven an excellent driver of sales but will provide Starbucks with invaluable customer data which will help it to better understand the specificities of its consumer base and adjust strategic initiatives going forward.

Conversely, huge social media backlash against the re-imaging of the Starbucks loyalty scheme in the UK will likely have a negative impact on sales across the first half of the year. In the next quarter Starbucks will do well to capitalise on the building of Olympic excitement to re-engage customers and re-build a positive brand image."