McDonald's Corporation MCD is all set to launch its first-ever loyalty program in the United States on Jul 8. This is brilliant news for its loyal fans. It is worth mentioning that the company started testing its loyalty program in November last year. Notably, the company already has a loyalty program in other countries like France.

The company announced that MyMcDonald’s Rewards will be available via the McDonald’s app nationwide. Following the launch, the company’s customers will get 100 points for every one dollar spent. Customers will get 1,500 points once they join the loyalty program. Items like hash browns, vanilla cone, McChicken or a cheeseburger will cost just 1,500 points. If customers have 6,000 points, they can be redeemed for Big Mac or a Happy Meal.

The new loyalty program will not only help in retaining its customers but will also help the company in expanding its customer base. We believe this loyalty program will aid sales. The company’s loyalty program is likely to drive average checks.

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Stock Performance

In the past six months, the company’s shares have gained 11.9%, compared with the industry’s rally of 10.8%.

During the coronavirus pandemic, the company has been focusing on drive-thru, delivery & take-away. Prior to the coronavirus crisis, drive-thru accounted for about two-thirds of all sales in the United States. Drive-thru now accounts for approximately 90% of sales. The company has more than 25,000 drive-thrus globally. Moreover, McDonald’s continues to roll out mobile order and pay, with a new curbside check-in option. To provide enhanced experience and convenience to customers, the company is increasingly focusing on delivery. It provides delivery from more than 30,000 restaurants in above 75 countries, compared to nearly 3,000 restaurants over the past 4 years.

Zacks Rank & Key Picks

Chipotle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the same space include Dine Brands Global, Inc. DIN, Texas Roadhouse, Inc. TXRH and Fiesta Restaurant Group, Inc. FRGI. While Dine Brands and Texas Roadhouse sport a Zacks Rank #1, Dave & Buster's carries a Zacks Rank #2 (Buy).

Dine Brands’ 2021 earnings are expected to surge 269.3%.

Texas Roadhouse has a three-five year earnings per share growth rate of 10%.

Fiesta Restaurant earnings in 2021 are likely to witness growth of 400%.

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DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report

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