McDonald’s beefing up its menu with sirloin burgers

In its latest bid to revive sales, McDonald’s is adding a new sirloin burger option to its US menu. The sirloin burger will be available in three versions and served on a wooden board to try signify freshness and high quality.

McDonald’s will hope this premium burger option will allow the struggling fast food giant to better compete with upstart gourmet burger chains, such as Smashburgers, Shake Shack and Five Guys, that have eaten into sales in recent years.

These “fast-casual” premium burger restaurants offer consumers a perceived healthier dining option centred around higher quality beef, a variety in the choice of toppings and in some cases, beer and wine.

Sales at McDonald’s have been declining for the past two years in a row, with the restaurant reporting a 2.4% decline in sales to €25.3bn ($27.4bn) in 2014 as net income fell to €4.4bn ($4.76bn).

McDonald’s have said the new sirloin burgers will be priced in the region of $5, which is in line with burger prices at rival gourmet burger chains. This would be at a 25% premium to McDonalds signature burger – the Big Mac.

This is not the first time McDonald’s has had a premium burger option on its menu, having previously offered customers Angus Third Pounders which were withdrawn from the menu two years ago.

Since taking over last month, McDonald’s new chief executive, Steve Easterbrook, has vowed to improve McDonald’s image with health conscious consumers by improving food quality that is made with fresher, natural ingredients.

The world’s largest restaurant chain is also aiming to simplify its menu, which had grown to over 120 options over the years, to reduce waiting times.

Sirloin burgers will be added to McDonald’s US menu for a limited period over the summer after which franchises will be given the option to carry them beyond the promotion if they catch on with customers.

Comment: If this latest premium offering from McDonald’s is a success then it is likely we may see them on menus in Europe soon. With one in five McDonald’s burgers eaten in Europe made from Irish beef, the new sirloin burger may present an opportunity for Irish beef processors to sell more high value cuts to one of their biggest clients.