NEW YORK- McDonald’s Corporation’s, net profit increased by 9 % this year. McDonald’s appears to be doing very well during a time of recession. Investors appreciated McDonald’s recent results and have boosted its share price by more than 3% to USD 91.96 per share.

McDonald’s success is due to its re-positioning of its food products to healthier and more nutritional choices. By offering these new food lines that are still quite affordable, especially during a recession, will attract more sales. However, McDonald’s has increased its prices on certain items on its menu slightly to proportionally match the funds expended on new ingredients. Simultaneously, it must be cautious to not raise its food prices substantially so that it does not lose customers. Moreover, another reason for its higher profit is its approach of using direct marketing to illustrate its nutritious and healthy products. The direct marketing method includes direct mail flyers, brochures and promotional advertisements. This approach is ideal as it builds customer loyalty; at the same time the company receives feedback of how people are responding to these new promotions. It will allow prospective customers to be aware of the benefits offered by the sales promotions that otherwise may not have been exposed to. Certainly, McDonald’s direct advertising campaign has been a success. Proof of this, is their continued increase in sales and ultimate increase in the corporation’s profitability.

Citation:  Associated Press. “ McDonald’s net income rises 9 pct” 21 October 2011. Web. 21 October. 2011. <http://online.wsj.com/article/AP7a914ccf34e34e1abed1b5192d67f1f8.html#printMode>

Picture: “McDonalds Canada – Free Biscuit Sandwich” 9 February 2011. Web. 21 October. 2011.<http://www.mrsjanuary.com/canada-freebies/mcdonalds-canada-free-biscuit-sandwhich-february-9-10-2011/>