Could McDonald's New Rewards Program Send Shares To New Highs?
Shares of McDonalds Inc (NYSE: MCD) are up 8% year-to-date and are trading close to 52-week highs. What Happened: The MyMcDonalds Rewards program will roll out nationwide on July 8, according to QSR Magazine. This marks the first loyalty program in McDonalds history. Customers will get 100 points for every $1 they spend at a McDonalds restaurant. First-time loyalty members will get 1,500 points loaded onto their account after their first order, an offer good through the end of 2021. Rewards will be available in four tiers. 1,500 points: hash brown, vanilla cone, cheeseburger, McChicken  3,000 points: medium fry, sausage burrito, 6pc chicken nuggets, large iced coffee  4,500 points: Filet OFish, large fry, large Frappe, sausage McMuffin with egg  6,000 points: Big Mac, Quarter Pounder with cheese, Happy Meal, bacon egg and cheese biscuit  Related Link: How To Buy McDonalds Stock  Why Its Important: The loyalty program is expected to increase engagement and return visits for McDonalds restaurants. Over 20 million McDonalds customers are using the companys ordering app, which will be a heavy focus of the loyalty program. Test markets in Phoenix and New England reported strong user adoption through the app and loyalty customers visiting restaurants more frequently than non-loyalty members. McDonalds restaurants are visited by 85% of the U.S. population at least one time annually, according to the company. Other restaurants are launching loyalty programs to capture guests in the highly competitive fast-food market. Restaurant Brands International (NYSE: QSR) launched a loyalty program on June 17 for its Popeyes Louisiana Kitchen brand. Restaurant Brands unit and McDonalds rival Burger King began testing Royal Perks in February giving 10 points for every $1 spent and allowing delivery customers the chance to earn and spend points, which is different from McDonalds. McDonalds beat earnings and revenue estimates from analysts for the first quarter. Comparable U.S. same-store sales were up 13.6%. Overall company revenue was up 9% year-over-year along with system-wide sales up 12% year-over-year. McDonalds will report second-quarter earnings later in July. MCD Price Action: Shares of McDonalds are trading flat to $234 on Thursday, nearing a 52 week high of $238.18.