McDonald's doubled down on the value menu in 2008 and grew while rivals fell

As the 2008 recession deepened, consumers traded down and casual dining chains suffered. McDonald's was positioned for exactly that shift: cheap, familiar food and a breakfast daypart that rivals did not cover.

In November 2008 worldwide same-store sales at McDonald's rose 7.7%, and U.S. same-store sales rose 4.5%, driven by breakfast items, chicken sandwiches and value-menu options. It was thriving in a downturn that was eating into competitors' sales.

McDonald's did not just lean on the cheapest items; it layered a fuller menu on top. Even as it grew, it moved beyond the value menu with premium and breakfast offerings, so it kept the trade-down customer and the middle class at the same time.

By 2009 Ad Age named McDonald's runner-up for marketer of the year because its same-store sales grew while many of the best-performing rivals were flat and the industry declined overall.

McDonald's same-store sales rose 7.7% globally in November 2008 and grew through a recession that produced double-digit drops at pricier sit-down restaurants.

Consumers cut spending and traded down from pricier restaurants.

A value menu and breakfast captured the trade-down customer.

Chicken and breakfast added margin beyond the cheapest items.

Fast-food rivals and casual dining chains reported declines.

An everyday-low-price-and-familiarity model fits a recession.

In a downturn the value leader wins share: McDonald's used cheap, familiar menu items and breakfast to pull diners down from pricier restaurants.

McDonald's came out of the 2008-2009 recession with stronger market share and a reputation as the resilient value leader. It later added all-day breakfast and refreshed its menu, but the recession strategy showed how a fast-food giant can use a downturn to gain share permanently.