NewsStocksMcDonald's Partners with Red Bull to Launch Energy Drinks Nationwide Amid Slower U.S. Sales

McDonald's Partners with Red Bull to Launch Energy Drinks Nationwide Amid Slower U.S. Sales

Author: Fox Business Markets·

Key Takeaways

  • McDonald’s will begin selling the Red Bull Dragonberry Energizer at participating U.S. restaurants on August 17.
  • The beverage is McDonald’s first entry into the energy drink category and combines Red Bull with blue raspberry syrup and freeze-dried dragonfruit.
  • Red Bull Zero will be available as a reduced-sugar alternative, and customers can also buy an 8.4-ounce can of Red Bull separately.
  • McDonald’s U.S. comparable sales increased 0.8% in the second quarter, below the 1.06% increase expected by analysts and down from 2.5% growth a year earlier.
  • The company plans to use more national digital offers and personalized promotions while continuing to expand its beverage menu with crafted sodas and Refreshers.
McDonald's Partners with Red Bull to Launch Energy Drinks Nationwide Amid Slower U.S. Sales

McDonald's is entering the energy drink market through a partnership with Red Bull, as the fast-food giant seeks to broaden its beverage offerings and attract more customers to its U.S. locations. The move pairs the world's largest burger chain with Red Bull, one of the bestselling energy drink brands in the United States, a category that has grown steadily as consumers increasingly seek functional beverages.

Beginning August 17, participating McDonald's restaurants across the United States will offer the Red Bull Dragonberry Energizer, representing the chain's first foray into the energy drink category. The beverage blends Red Bull with blue raspberry syrup and freeze-dried dragonfruit. Customers may request Red Bull Zero as a reduced-sugar alternative, or purchase an 8.4-ounce can of Red Bull on its own.

The beverage expansion arrives as McDonald's seeks to reverse a slowdown in customer traffic. During the second quarter, the company's U.S. business posted weaker-than-expected sales growth. Comparable sales in the U.S., McDonald's largest market, rose 0.8% for the quarter, falling short of the 1.06% increase that analysts surveyed by LSEG had anticipated. In the same period a year earlier, U.S. comparable sales had grown 2.5%.

CEO Chris Kempczinski attributed the underperformance to operational missteps rather than strategic failings, citing inconsistent promotion of value offerings and reduced deployment of digital deals as factors behind the softer customer traffic.

"We don't have a strategy problem. We simply didn't execute at the level we needed to in the second quarter," Kempczinski said.

CFO Ian Borden indicated that the company intends to deploy more national digital offers and personalized promotions aimed at reengaging loyal patrons. The goal, he said, is to "reenergize our high-frequency customers."

The Red Bull introduction builds on McDonald's recent expansion of its core beverage portfolio, which includes crafted sodas and Refreshers. Beverages have become an increasingly important growth lever for quick-service restaurant chains, which often earn higher profit margins on drinks than on food items.

"We've seen growing enthusiasm for our crafted sodas and refreshers as fans look for more variety and options to fit every occasion," said Alyssa Buetikofer, chief marketing and customer experience officer for McDonald's USA. "They loved the Red Bull Dragonberry Energizer when we first tested it in the U.S., so we're excited to give fans nationwide the energy they've been craving with Red Bull. And we're just getting started."

McDonald's is simultaneously broadening its crafted soda selection with the Vanilla Swirl, which pairs vanilla flavoring and cold foam with a choice of Coca-Cola, Diet Coke, or Coke Zero Sugar. Additional offerings, which will vary by location, include an Orange Dream made with Fanta, as well as reduced-sugar crafted sodas featuring Diet Dr Pepper, Dr Pepper Zero Sugar, and Sprite Zero Sugar.

According to the company, both McDonald's Refreshers and Red Bull Energizers contain caffeine.