McDonald’s Rehires Agency That Created ‘You Deserve a Break Today’

Two weeks after a management shake-up prompted by lackluster sales, McDonald’s Corp. on Tuesday switched much of its advertising business to DDB Needham from longtime agency Leo Burnett Co.

Needham was named lead agency, responsible for brand advertising, promotions and advertising geared to adults. Burnett will continue to develop ads aimed at children and teens, Oak Brook, Ill.-based McDonald’s said.

Total domestic billings are estimated to be in excess of $400 million.

Winning the business was sweet for Needham, which had been McDonald’s lead agency from 1970 to 1981. Needham Chairman Keith Reinhard wrote the slogan: “You deserve a break today.”

“It is like your first love, there is something special about it,” Reinhard said. “It is the first national account I worked on.”

The loss of the business was a blow to Burnett, which has suffered a number of high-profile client defections. In the last year, it has lost United Airlines, the creative portion of Miller Lite and recently resigned the Reebok athletic shoe business.

A spokesman for Chicago-based Leo Burnett said he did not believe that the agency was being blamed for McDonald’s difficulties. Among the fast-food company’s recent missteps was the ill-advised 55-cent sandwich promotion. A number of franchisees raised the prices of fries and drinks to compensate for revenue losses on the cheaper sandwiches.

The president of McDonald’s USA, Edward H. Rensi, resigned on July 9.

About 300 people of Burnett’s 2,100 domestic work force worked at least part time on McDonald’s. The agency spokesman said it has not yet assessed staffing needs.

The two agencies squared off in a high-stakes shootout last week. To win the business, Needham tapped people in its far-flung network, including Hollywood director Spike Lee, who owns an agency in partnership with Needham.

Reinhard said Lee contributed general market ideas and will work on McDonald’s advertising, though the overall effort will be led by Needham’s Chicago office. Lee’s agency was created to focus on the urban market, a segment influenced by black consumers.

McDonald’s said Needham and Burnett proposed similar advertising approaches, but that Needham’s concepts were more focused. The new ads are expected to appear in September or October.