McDonald’s tests its new Big Arch menu addition as it looks to shake up the burger sector

Early reviews are starting to pour on McDonald’s (NYSE:MCD) giant Big Arch hamburger that is debuting in Canada and Portugal. The Big Arch is reported to be larger than the traditional Big Mac and features two beef patties, three squares of white cheddar cheese, a tangy sauce, and crispy onions served on a toasted sesame and poppy seed bun. The consensus opinion so far appears to be that the Big Arch is appealing to large hamburger lovers. The nutritional scorecard for the Big Arch indicates that it has 1030 calories, 52 grams of protein, total fat of 66 grams, trans fat of 2 grams, and 1980 milligrams of sodium.

Crucially, the Big Arch menu item is being set up to be a permanent part of the McDonald’s (MCD) menu. The fast-food giant is planning to see how the test goes in test countries before a large rollout to the U.S. and locations. McDonald’s (MCD) originally announced plans to introduce the Big Arch at its annual investor meeting last year in what it said was a response to customer requests for heartier burgers. During a recent earnings call, McDonald’s (MCD) CEO Chris Kempczinski called the Big Arch the chain’s “quintessential” new item, with a twist on the chain’s iconic familiar flavors. “We think we’re going to be able to deliver a great tasting large burger at a superior value to what customers can get anywhere else,” he noted. Kempczinski indicated that McDonald’s (MCD) plans to “learn” throughout the rest of the year before scaling more broadly internationally.

A large rollout in the U.S. of the Big Arch could add incremental competition for other burger chains such as Wendy’s (WEN), Burger King (QSR), Sonic, Jack in the Box (JACK), Whataburger, Culver’s, Five Guys, Hardee’s, Carl’s Jr., Smashburger, Habit Burger (YUM), In-N-Out Burger, Rally’s, BurgerFi (BFI), Fuddruckers, and Shake Shack (SHAK).