McDonald's CEO wants to know if a vegan burger will increase traffic



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As the pressure mounted on McDonald's to add a vegan burger to its lineup, CEO Steve Easterbrook compared the decision made to his choice to start offering breakfast all day.

"The first question is whether the demand will absorb the complexity because it will stimulate the business." We had a similar discussion maybe four years ago about breakfast, "Easterbrook said in a statement. "Squawk on the Street".

Once in place, the All-Day Breakfast boosted comparable store sales growth for several quarters. But the competitors took note and reinforced the breakfast offers. Earlier this month, as part of its efforts to accelerate service, McDonald's said that franchisees could reduce their breakfast offer all day.

McDonald's has been under pressure in recent months to add a veggie-friendly burger to its menu as more and more of its competitors have taken the plunge.

"I do not think it's fantastic," said Easterbrook. "What's interesting is whether it keeps the same level of buzz."

Its German sites sell a herbal burger made by the food giant Nestle, but McDonald said each market decides what is best for its customers.

The craze for factories is also occurring, the Chicago-based company reducing its menu to reduce the complexity of its restaurants. He reduced his late-night offer and reduced his range of high-end hamburgers.

"When you look at all the meat substitute type ideas, I think what will be interesting for us will be to see who is particularly interested in that," Easterbrook told CNBC's Carl Quintanilla on Wednesday. "Is an existing customer who just wants an alternative option, does he bring in a new client?"

McDonald's CEO, Steve Easterbrook, speaks at a press conference in New York on November 17, 2016.

Shannon Stapleton | Reuters

Silvia Lagnado, global marketing director and director of her menu, said at the annual meeting of its shareholders on Thursday that the company was monitoring plant-based meat substitutes, but that she would not disclose any plans for the moment.

In the meantime, McDonald's rivals are taking advantage of its lack of action. Burger King, of Restaurant Brands International, is testing the Impossible Whopper, made from the Impossible Burger Factory. As part of the pilot project, the new offering resulted in an 18.5% increase in traffic to the test market sites in April, according to a report from the inMarket inSights location data firm.

McDonald's saw traffic increase in the last quarter but, like other players in the sector, he struggled to bring customers back to his stores.

"I think across the industry, traffic is limited at the moment and people are eating less at the restaurant, believe it or not," Easterbrook said.

Some consumers might be unhappy with the lack of vegan options from McDonald's, but investors have pushed action to a new unprecedented high last week. In the past year, its stock has increased by 22%.

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