McDonald's president cites BTS for sales increase, BTS ARMYs for good deeds

Published July 29, 2021, 12:17 PM

by Jonathan Hicap

BTS and the BTS Meal (McDonald’s / Jonathan Hicap)

Chris Kempczinski, president and CEO of McDonald’s Corp., said K-pop superstars BTS’ “BTS Meal” helped in boosting the fast-food chain’s sales worldwide in the second quarter of 2021 and cited the good deeds of BTS ARMYs towards its crew.

The BTS Meal was launched in 49 markets worldwide starting in the US and several countries on May 26. In the Philippines, it was launched on June 18.

On July 28, McDonald’s reported its second quarter performance ending June 30. It said global comparable sales increased by 40.5 percent in the second quarter and increased by 6.9 percent on a two-year basis.

For the second quarter, McDonald’s posted sales of $5.88 billion, an increase of 57 percent compared to $3.76 billion during the same period last year. Its net income rose to $2.21 billion from $483.8 million in the same quarter last year.

Its sales in the US increased by 25.9 percent while international operated markets posted an increase of 75.1 percent and international developmental licensed markets & Corporate by 32.3 percent.

International Operated Markets, according to McDonald’s 2020 Annual Report, “comprised of markets, or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K. The segment is 84% franchised as of December 31, 2020.”

International Developmental Licensed Markets & Corporate, on the other hand, “comprised primarily of developmental licensee and affiliate markets in the McDonald’s system. Corporate activities are also reported in this segment. The segment is 98% franchised as of December 31, 2020.”

In its press statement, McDonald’s said in the US, “The Crispy Chicken Sandwich and BTS Famous Order promotion, as well as growth in delivery and digital platforms, contributed to the comparable sales growth.”

During the McDonald’s Second Quarter 2021 Investor Conference Call held on July 28, Kempczinski cited BTS and BTS ARMYs.

“This quarter, the BTS Famous Order took that ambition global, connecting our marketing, core menu and digital strategies in 50 markets. And it was our first Famous Order with custom packaging and app-exclusive content,” he said.

He added, “It has been, to borrow a BTS lyric, ‘Dynamite.’ We saw significant lifts in McNuggets sales and record-breaking levels of social engagement. McDonald’s customers and BTS fans all over the globe downloaded our app, ordered Chicken McNuggets with delicious sweet chili and Cajun dipping sauces and posted about it on social media, leading McDonald’s to trend number two on Twitter globally and number one in the US.”

Kempczinski also mentioned the creative ways that BTS ARMYs did with the BTS Meal packaging and praised them for giving snacks to McDonald’s crew in Malaysia, Philippines and Vietnam.

“And then the BTS ARMY took it a step further and memorialized the partnership, creating shoes, accessories and frame memorabilia from our packaging. They were so appreciative of the meal that the BTS ARMY went out of their way to prepare snacks for our crew and managers in Malaysia, the Philippines and Vietnam to support them on launch day,” said Kempczinski.

During the same conference call, Kevin Ozan, McDonald’s executive vice president and chief financial officer, said, “In the U.S. our momentum continued with Q2 comp sales up 26 percent or 15 percent on a two-year basis, our strongest quarterly two-year growth in over 15 years.”

He said US sales “has been bolstered by growth in delivery and digital platforms as well as robust menu and marketing programs. This includes an advertising rehit of our Crispy Chicken Sandwich, which continues to perform at an elevated level and the success of our BTS meal.”

“Strong performance continued in Australia. The market benefited from continued growth in delivery and successful marketing and core menu news, including the BTS Famous Orders and 50th Birthday Big Mac promotion,” said Ozan.

He added, “Canada benefited from strong marketing activity featuring our core menu, including the BTS Famous Orders meal,” based on the call transcript posted on the Motley Fool website.

In the Philippines, Margot Torres, head of marketing of McDonald’s Philippines, told Manila Bulletin last month that in five days from June 18 to 22, nearly one million orders of BTS Meal were sold.