Further Down The Happy Meal Trail

I wrote earlier here about the McDonald’s (MCD:NYSE) and their vision of the future. One of their core principles was that of offering delivery. I think that delivery is important for a couple of reasons. The first is that of convenience. You would think that a drive thru with Apple Pay would be enough but not for the world we live in today. People today want their food brought right to them. The second is a little more important. I don’t know the profit margin of a cheeseburger but I do know that simple arithmetic tells you that the more you can charge for a product, the more money you make. This goes back to my thoughts on McDonald’s buying Shake Shack (SHAK:NYSE). I think that , if delivery works, we’ll see a Premium product from McDonald’s with a premium price. Should be good for the stock price.

According to this article from the Washington Post, things are moving along.

McDonald’s expands delivery partnership with UberEats

 

May 17 at 9:56 AM

NEW YORK — Is the convenience of having a Quarter Pounder and fries delivered to your home or office worth a $5 fee? McDonald’s is hoping it will be.

The fast-food chain says it’s expanding its partnership with UberEats to offer delivery in Chicago, Columbus, Los Angeles and Phoenix. The two had already teamed up to offer McDonald’s delivery in Miami, Orlando and Tampa, Florida earlier this year.

In all, McDonald’s says “McDelivery” is now available from more than 1,000 U.S. locations.

McDonald’s is hoping delivery can help turn around its U.S. business, which has seen customer visits decline. Uber says its delivery fee varies depending on the city, but that it is generally a flat $4.99. There could also be a “busy area” fee of $1 to $2 where demand is high.

 Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

DISCLOSURE: This article was written for informational purposes only. It is not intended as investment advice and should not be relied upon as such. Consult with a qualified financial advisor or tax professional to determine the proper investment plan for you and your circumstances. I do not personally own or plan to purchase any investments spoken of here.

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