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Feb 4

How McDonald’s turns healthier eating trend into higher profit – EJ Insight

McDonalds reported 11 percent growth in net profit for the fourth quarter of 2019, beating market expectations. The fast-food chain saw US same-store sales rise 5.1 percent in the period, the highest in over 10 years and offsetting a 1.9 percent decline in foot traffic to its restaurants.

One of the major contributors behind the better profit is kale burgers.

McDonalds started to introduce kale burger back in 2017, and from last year, it is available on the menu at most of its US outlets.

Compared to its signature burger, kale burger comes with the usual ingredients, including two slices of bread, one slice of tomato, a slice of cheese and one patty of beef or grilled chicken; the only difference is that kale replaces lettuce.

But there is a big difference in price. A kale burger goes for US$5.99, compared with US$2.18 for a regular cheese burger, or US$3.79 for a Big Mac.

Eating healthy is the trend in recent years. Kale, as well as avocado and quinoa are considered some of the best super foods.

Kale is said to be loaded with antioxidants, and its Glucosinolate content is proved to help curb breast cancer. Kale is also a great source of Vitamin C, much higher than other fruits and vegetables. And it can help lower cholesterol and lose weight.

McDonalds is not the only one taking advantage of the kales popularity. Many restaurants have introduced Kale menu, such as kale salads and kale sandwiches. Some Chinese restaurants have introduced kale fried rice or kale steam dumplings.

To cater to health-conscious consumers, McDonalds has also introduced light burgers, salads, plant-based burgers, etc.

One cant say whether healthier burgers can make a real difference to the diet quality, but the fast-food giant is certainly enjoying a fatter margin.

This article appeared in the Hong Kong Economic Journal on Feb 3

Translation by Julie Zhu

[Chinese version ]

Contact us at [emailprotected]

RC

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How McDonald's turns healthier eating trend into higher profit - EJ Insight

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