For McDonald’s, 2016 began much better than 2015. The global iconic company has made great strides in its turnaround plan, taking positive steps to securing more brand loyalty.
McDonald’s CEO Steve Easterbrook is very excited about the company’s progress, evidenced by his comments during Monday’s fiscal fourth-quarter conference call.
“We begin 2016 in a much better place than we were 12 months ago,” Easterbrook said, according to Seeking Alpha. “Today, we are more aligned to the system, franchisee cash flows, our major markets are improving, and we have a strong commitment to executing our turnaround plan. Our near-term priorities are clear. Our turnaround plan is 
the first step to fortifying the fundamentals of our business and restarting growth. It’s grounded in running great restaurants, driving operating growth, creating brand excitement, and enhancing financial value. These actions ultimately position us to strengthen and grow as a more competitive and more modern business. We’ll build on this foundation as we position McDonald’s for long-term growth that would drive shareholder value in 2016 and beyond.”
For McDonald’s, 2015 was a tale of two different halves.
“The first half of the year our performance fell short of expectations as I stepped into my role,” Easterbrook explained. “My priority was to objectively assess our business, diagnose our opportunities, and develop a leaner organizational structure. The second half of the year was about execution. The new operating structure that went into effect on July 1 sharpened our focus through a great accountability and removed distractions and bureaucracy to speed up decisions and increase our ability to move winning tactics quickly across markets.”
McDonald’s ended 2015 on an upward trajectory. Comparable sales were up 5% for the full quarter, up 1.5% for the full year. U.S. comparable sales increased 5.7% for the full fourth quarter, marking the best quarter in nearly four years.
“While we’ve seen recent improvements in comparable guest counts, they remain negative for the full year,” Easterbrook said. “We need to do even more to increase the frequency of visits from our loyal customers and win back customers we’ve lost.”
Easterbrook noted the foundational steps taken to enhance menu quality, simplify restaurant operations, and offer even more convenience to customers−factors that “led to a palpable shift in momentum in the third quarter. All Day Breakfast fills on this momentum in the fourth quarter, exceeding internal expectations during the launch phase. It’s driving incremental business. Many customers who otherwise would have gone elsewhere are coming to McDonald’s to enjoy some of their favorite breakfast items like our Egg McMuffin and Hash Browns at lunch and throughout the rest of the day.”
At the same time, existing customers are adding breakfast entrees to their regular orders, boosting sales and average check.
“Another priority in the U.S. is the establishment of a consistent national value offering,” Easterbrook said. “We began testing McPick 2 earlier this month. This value offer gives customers the flexibility to bundle their choice of two items at a compelling price points. The offer appears to be resonating with customers.”