McDonald’s Sees Boost in Loyalty Amid Challenges in Q4 Earnings

While McDonald’s fourth-quarter earnings, released Monday (Feb. 10), “did not meet our expectations,” according to CEO Chris Kempczinski, customer loyalty was a bright spot amid a slight uptick (0.4%) in global comparable sales while U.S. comparable sales slipped 1.4% largely due to the aftermath of an E. coli outbreak linked to onions in its quarter pounder burgers.

In 2024, McDonald’s loyalty program, MyMcDonald’s Rewards,  generated $30 billion in sales, marking a 30% increase from the previous year, while its active loyalty user base grew 15%, reaching 175 million. Company officials have set goals of 250 million 90-day active users and systemwide loyalty sales of $45 billion attributed to loyalty members by the end of 2027.

Loyal Members Spend More

“Our loyalty customers spend more than their non-digital counterparts,” Kempczinski said during the earnings call. “We’re making progress on our loyalty goals.”

Chief Financial Officer Ian Borden noted customer loyalty and digital engagement are “going to be really important ways for us to drive check and frequency as we move forward. Loyalty drives more visits and those customers spend more over time.”

“Accelerating the Arches continues to be the right strategy as we focus on growing market share,” Kempczinski said in a press release. “We’re playing to win, focusing on our customers with outstanding value, exciting menu innovation and culturally relevant marketing.”

Launching the McValue Menu

Part of that innovation was the Jan. 7 launch of its new McValue menu nationwide, offering customers all-day savings and a variety of deals, including the Buy One, Add One for $1 offer and the popular $5 Meal Deal. The platform also includes app-exclusive perks like free medium fries with a $1 purchase every Friday in 2025 and a free McCrispy chicken sandwich for new app users.

As McDonald’s marks its 70th anniversary this year, Kempczinski stressed the company’s commitment to treating communities with dignity and respect, building on the legacy of founder Ray Kroc, and ensuring the company’s readiness for growth.

“The E. coli impact is now localized to areas that had the biggest impacts,” he said, “which was mainly the Rocky Mountains. It’s been contained to that region. The rest of the U.S. didn’t see an impact. It’s going to be a function of us executing. Weve got to make sure McValue is off to good start and strong marketing programs with that. When we do that and do that well, we can put up positive guest counts and positive comps.”

Importance of Restaurant Loyalty Programs

As McDonald’s introduces its new value offerings to attract more customers, the importance of loyalty programs in the restaurant industry cannot be overlooked. The PYMNTS Intelligence report, “Connected Dining: Consumers Like the Taste of Discount Meals,” shows 51% of consumers use at least one restaurant loyalty program, with 49% participating in these programs at quick-service restaurants (QSRs) and 34% at full-service restaurants (FSRs).

McDonald’s focus on loyalty programs plays a crucial role in driving customer engagement. The company is leveraging geofencing technology as part of its “Ready on Arrival” program to streamline the mobile ordering process, allowing crews to prepare orders before customers even arrive at the restaurant. This initiative is elevating customer satisfaction by reducing wait times and improving kitchen efficiency. By integrating technologies like geofencing and enhancing its mobile app experience, McDonald’s aims to streamline service and reinforce its loyalty proposition.