McDonald's: 'You haven't seen the end of McRib quite yet,' analyst says
The McRib is bound to return from the dead, or so this analyst says.
"This is not the end of McRib, McRib will come back will come back at some point, maybe it's not [the year] '23, maybe it's '24," BTIG Managing Director Peter Saleh told Yahoo Finance LIVE.
In late October 2022, the famed McDonald's (MCD) McRib went on a so-called “Farewell Tour,” in what the company said was a last chance for fans to "experience a taste" of the tangy, barbecue, boneless pork sandwich.
But with the McRib a key driver to McD's U.S. same-store store sales, up 10.3%, in Q4 2022 results, Saleh said the sandwich, first launched in 1980, is bound to make a comeback.
"It's working for them, so long as it continues to work and drives customer traffic, they will continue to pull it back in. It's just not a permanent piece of the menu, so I suspect you're ... you haven't seen the end of McRib quite yet," he said.
McDonald's hinted at the sammie's return in its earnings release: "Like any true farewell tour, we’re hoping this isn’t a 'goodbye' but a 'see you later.' Because as our McRib stans have experienced time and time again: you never know when – or if – the McRib is coming back."
The so-called farewell of the McRib came after a few limited-runs of the sandwich. In November of 2021, it returned for a limited-time along with McDonald's first-ever NFT. Back in 2003, McDonald's introduced the McRib Jr., a mini-version of the sandwich.
CEO Chris Kempczinski told investors on the earnings call that the nostalgia factor was a key growth driver last quarter stateside, as the company saw higher customer frequency with simple marketing strategies.
"Memorable marketing campaigns including our collaboration with Cactus Plant Flea Market, Boo Buckets and McRib brought nostalgia to our customers, fueling top-line momentum with limited-added complexity in our restaurants," Kempczinski said.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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