Episode summary
McDonald’s CEO on Going Viral, Choosing Chicken and the Fast-Food Wars | WSJ’s Bold Names
The Journal
· · 24 min · Hosts: Tim Higgins · Guests: Chris Kempczinski
Summary
McDonald’s CEO Chris Kempczinski says his viral tiny-bite burger clip became a useful test of how a consumer brand should behave online: lean in, let the internet react, and use the attention to keep McDonald’s part of culture. He argues that CEOs of big consumer brands need some social presence, but McDonald’s should avoid culture-war fights and political endorsements because it serves everyone.
The bigger business theme is McDonald’s attempt to win on both ends of the menu. Kempczinski says the chain is pushing value with McValue, a $5 meal, and a new menu of 10 items under $3, while also selling premium items like the Big Arch, a half-pound burger meant to capture diners who want a more elevated experience. He says the strategy is to serve “two Americas” by growing with low-income and upper-income customers at the same time.
He also emphasizes pressure on franchisees from beef and labor inflation, saying the company must protect customer affordability while driving more traffic. McDonald’s is betting on scale, stronger marketing, and a better restaurant experience, including more chicken, since chicken is growing faster globally and fits both value and taste trends.
Key takeaways
- Kempczinski says the viral burger moment helped McDonald’s by driving attention to Big Arch and showing the company can lean into internet culture.
- McDonald’s is pursuing both premium and value at once, with Big Arch on one side and a $5 meal plus 10 items under $3 on the other.
- He says McDonald’s is gaining share with both low-income and upper-income consumers, which he views as evidence the menu mix is working.
- Inflation in beef and labor is squeezing franchisee economics, so McDonald’s is prioritizing guest traffic over simple price increases.
- Kempczinski says chicken is a major growth area because demand is rising globally and chicken products support the chain’s value strategy.
Notable quotes
“I think what I try to showcase is are the fun aspects of our brand”
“our guests are actually just as much in control of our brand as we are”
“we've made a lot of progress, particularly on the value front”
“there's a group of consumers out there who want a really big burger”
How the episode opens
It's a little weird to watch each other eat. Yeah, well, imagine how I felt. — Seemed like a simple assignment. Yeah, seemed like it. This week on Bold Names, we're talking to Chris Kempczinski. He's the CEO of McDonald's. You probably recognize him cuz he just went viral trying to promote the company's new burger. You've heard about it. Here it is. The Big Arch. At half a pound of meat. It's a big one.
All right, the moment of truth. Chris took what looked like a tiny nibble and his rivals pounced. Burger King made a video of its president taking a huge bite out of the Whopper.
Only one thing missing. A napkin. And Wendy's got in on it, too.
After burger. So, I went to McDonald's headquarters in Chicago to talk with Chris about being the company's face in the social media era and what McDonald's is cooking up next. Chris, so great.
Thanks for joining us. Yes, welcome to McDonald's. It's great to be here.
How did you realize that you went viral?
It's a weird thing, for sure. Uh, you know, so the the video had been out for about, uh, I don't know, three or four weeks, something like that. And, uh, and I got a call from one of my kids and they said, "Dad, you've gone viral. And not in a good way."
And, uh, so that's when I knew like, "Okay, something's going on." And then, uh, yeah, I started getting texts and emails and calls from, you know, friends and people from all walks of life that, you know, knew me and, you know, invariably they were all like, "Hey, have you seen this?" And it's like by the thousandth time, yeah, I've seen it.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- viral marketing
- ceo social media
- fast food competition
- value vs premium pricing
- meal affordability
Companies and tickers mentioned
- MCD
- McDonald's
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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