McDonald's to Double Advertising Spending to Diverse Media
By Dieter Holger
McDonald's Corp. will more than double its advertising dollars
to diverse-owned media companies after the fast-food giant boosted
marketing to help recover from the pandemic.
The Chicago-based company said Thursday that its advertising
spending will increase to 10% from 4% between 2021 and 2024 to
platforms owned by groups including Black, Hispanic and Asian
Pacific American people, women and LGBT people. For Black-owned
properties, spending will rise to 5% from 2%.
It will also form an advisory board of advertising and marketing
experts to identify "the biggest barriers to economic opportunity
facing diverse partners and putting collective resources behind new
programs and initiatives to eliminate them," McDonald's said.
"We're using our resources to support these platforms and
businesses, which keep the brand at the center of culture while
creating deeper relationships with our diverse customers, crew and
employees," said Morgan Flatley, chief marketing officer at
McDonald's is among the many companies that have pledged to put
more money behind minority-owned businesses following racial unrest
that rocked the U.S. and U.K. last year. In early April, General
Motors Co. said it would allocate 4% of its U.S. advertising
spending to Black-owned media companies by next year and boost that
level to 8% in 2025.
Last week, The Wall Street Journal reported that Japanese
advertising company Dentsu Group Inc. launched a stand-alone
division to help connect minority-owned companies to ad buyers
looking to direct more dollars to such firms.
Advertising spending fell at many companies during the pandemic.
In February, McDonald's said in a filing that advertising costs
included in the operating expenses for company-run restaurants fell
to $325.5 million last year from $365.8 million in 2019, primarily
due to lower sales because of the pandemic. Still, it spent more
than $200 million in marketing last year to drive recovery for
In the first quarter of this year, McDonald's sales rebounded
from the pandemic and beat expectations, buoyed by new menu items.
McDonald's reported sales of $5.1 billion for the quarter ended in
March, up 9% from a year earlier.
McDonald's ranks fourth among 67 global publicly traded
restaurant companies for its management of environmental, social
and governance issues, including disclosures and programs,
according to the WSJ ESG scores.
Write to Dieter Holger at firstname.lastname@example.org;
(END) Dow Jones Newswires
May 20, 2021 05:15 ET (09:15 GMT)
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