In an effort to boost sales, McDonald's Corp. (NYSE:MCD) is set to test a larger burger, the company announced on Tuesday.
What Happened: The fast-food giant plans to launch a bigger burger in select markets globally, reported Bloomberg.
This move is part of the company's larger growth strategy, which was revealed in December and focuses on the core menu, particularly beef.
"Our team of chefs from around the world have created a larger, satiating burger," Chief Financial Officer Ian Borden said Tuesday on a call with analysts. McDonald's will roll it out to a few markets around the world to make sure it has global appeal, he said.
The company has been grappling with a slowdown in demand, particularly in the U.S., and is now looking to concentrate on affordability in the domestic market.
Why It Matters: This announcement comes in the wake of McDonald's reporting a 4.6% year-on-year increase in first-quarter sales to $6.17 billion, surpassing the analyst consensus estimate of $6.155 billion.
Meanwhile, restaurants in California have been raising menu prices following a state-mandated increase in the minimum wage for fast-food workers. This surge in prices has been observed at various fast-food and fast-casual chains throughout the state, outpacing other regions.
McDonald's has previously experimented with its burger offerings, such as the revamped Double Big Mac, which included tweaks to the core burger elements and a limited run. These limited-time offerings are often used as marketing tactics to generate customer interest and compete with other fast-food chains.
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