Two news items may have collided in the last week with restaurant giant McDonald's Corporation
Here's how they're connected.
What Happened: McDonald's Corporation reported second-quarter financial results Thursday that beat analyst estimates for earnings per share and revenue. The company posted second-quarter sales of $6.5 billion, which was up 14% year-over-year.
Along with the earnings results, McDonald's shared that it is ready to test a restaurant spinoff brand that involves one of its old characters.
"CosMc's is a small format concept with all the DNA of McDonald's, but with its own unique personality," McDonald's CEO Chris Kempczinski told investors and analysts during the earnings call.
Kempczinski said the restaurant company will test the restaurant in a "limited geography" beginning in early 2024.
More details will be unveiled during the company's investor day in December, the CEO added.
Some McDonald's fans may remember the character CosMc, who was a McDonaldland character and mascot in the chain's TV commercials in the 1980s and 1990s. CosMc is an alien who happens to crave and love McDonald's food.
A report from Fast Company shares more details on the legend of CosMc, who the publication refers to as a "B-list McDonaldland celebrity at best."
CosMc is a six-armed alien who first appeared in ads in 1987. The alien offers trades with other McDonald's characters like Ronald McDonald and Grimace that are bad deals.
The alien was part of other commercials and a 1992 video game from Nintendo Co
Why It's Important: The revival of CosMc comes after McDonald's saw success from the comeback of the Grimace character, who also was a big part of old television commercials.
A birthday celebration of Grimace that saw the limited time launch of Grimace shakes in McDonald's stores was cited as a reason for the fast food chain's strong second-quarter sales growth.
"This quarter, if I'm being honest, the theme was Grimace," Kempczinski said. "Grimace has been everywhere the past few months. All over the news, and more than 3 billion views on TikTok. Not bad for a 52nd birthday."
The Grimace shakes trended on social media sites like TikTok, which likely helped the sales increase.
McDonald's has also used nostalgia previously and launched adult Happy Meals to try and connect with its older fans.
With over 40,000 restaurants worldwide, including over 13,000 in the United States, McDonald's is one of the largest restaurant companies in the world. Plans for an additional concept could put the new restaurants in competition with existing McDonald's, depending on locations and the products offered.
Over 95% of McDonald's restaurants are franchised, which could create friction with any franchise owners who have units located near the new CosMcs's.
Big questions remain, with many wondering what kind of food the restaurants will offer. Could it be a different type of restaurant offering something like pizza - or an out-of-this-world food type?
McDonald's previously owned stakes in restaurant companies including Chipotle Mexican Grill
