McDonald's Tests Mobile Loyalty Solution

Even though a few McDonald's (NYSE: MCD) franchisees are experimenting with a mobile loyalty solution, the company does not have plans to roll out the program nationwide. 

The test revolves around a loyalty app and are strictly available in one region with about 420 of the company's units, McDonald's Director of U.S. Media Relations Lisa McComb told Nation's Restaurant News. She called the program a "local experiment with gaming and couponing technology", but did not offer further details.

In previous months, the global foodservice company has conducted other mobile pilot programs, including one for a mobile-payment solution. McDonald's is investigating ways to appeal to more customers by providing a mobile platform that integrates mobile payments, ordering and loyalty.

"Given McDonald's significant scale, resources and technology investments, we believe the company can quickly move from laggard to leader in the mobile engagement arena, perhaps providing a competitive advantage against quick-service peers that do not have the resources or infrastructure to move as quickly," Jason West, an analyst with Deutsche Bank securities, wrote after meeting with McDonald's management team recently, Nation's Restaurant News reported.

McDonald's operates or franchises more than 34,000 restaurants worldwide, including more than 14,000 locations in the United States.

For more, see:
This Nation's Restaurant News article
This Bloomberg article

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