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McDonald’s (MCD) Snack Wrap Comeback Sparks Huge Sales Surge After 9-Year Hiatus

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Fast-food chain McDonald’s is getting a strong response from customers after bringing back its Snack Wrap.

McDonald’s (MCD) Snack Wrap Comeback Sparks Huge Sales Surge After 9-Year Hiatus

Fast-food chain McDonald’s (MCD) is getting a strong response from customers after bringing back its Snack Wraps earlier this month for the first time in nine years. In fact, data from Placer.ai shows that during the first three days of the relaunch, traffic at U.S. locations jumped by double digits compared to the daily average for the year. Evercore ISI also estimates that U.S. same-store sales have risen by 7% so far in the third quarter, which is a welcome sign for the company after weaker sales earlier this year.

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Interestingly, the demand was so high that some McDonald’s locations temporarily ran out of lettuce, although the company says that issue has already been fixed. In a statement to CNBC, McDonald’s said, “After nine years of pent up demand, fans showed up in full force to celebrate the return of the Snack Wrap. We’ve been blown away by the response, from packed restaurants with lines out the door to nonstop social buzz.” This follows other recent promotions, such as the $5 meal deal and a Minecraft movie tie-in.

What makes the Snack Wrap’s return stand out is that it might have staying power. Indeed, a survey by Numerator found that 90% of more than 200 verified buyers said that they would purchase the wraps again. These buyers also visit McDonald’s far more often than typical customers. For reference, they have made 56 visits this year compared to 25 visits for the average diner. In addition, the wraps cost $2.99 and use McDonald’s McCrispy Strips, with ranch and spicy flavors available. However, it is worth noting that the company’s August 6 earnings report will not include sales from the wraps since they launched after the second quarter ended.

Is MCD Stock a Good Buy?

Overall, analysts have a Moderate Buy consensus rating on MCD stock based on 14 Buys, 13 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MCD price target of $335.87 per share implies 12.7% upside potential.

See more MCD analyst ratings

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