Are Innovative Beverages Enough to Turn McDonald's Around?
Part of the company's growth strategy is to add interesting menu items while simplifying operations.
Overview
McDonald's (NYSE: MCD) is making a bold bet that new, innovative drinks can spur much-needed growth. The fast-food giant has been testing new beverages in select markets and will introduce even more interesting options this fall. Most notably, a new line of energy drinks in collaboration with Red Bull will hit stores in mid-August.
Unfortunately, I do not believe the novelty drinks are enough to solve the stagnant-growth crisis facing McDonald's and many of its peers in the industry, as well as across the broader consumer discretionary sector.
Details
McDonald's is in the middle of its turnaround, internally called >NEXT. The strategy aims to simplify operations while adding new and improved menu items. So far, results have been mixed, but analysts remain cautiously optimistic.
Source
Originally published at www.fool.com.