McDonald’s Sales Continue To Plunge
McDonald’s sales have continued to plunge throughout the United States and worldwide. In February alone, McDonald’s reported a four percent decline in U.S. sales and a 1.7 percent drop in international sales. Experts blame increased competition from chains offering fresher and healthier options.
In response to the continued decline, McDonald’s replaced their CEO and has vowed to make some important changes.
On March 1, former Chief Executive Officer Don Thompson was replaced with Steve Easterbrook. As reported by About McDonald’s, Easterbrook has been with the company since 1993.
With the exception of two years between 2011 and 2013, Easterbrook served as a McDonald’s executive for a total of 20 years. In the last two years, Easterbook has served as McDonald’s Chief Brand Officer.
Following his appointment as CEO, Easterbrook announced the fast-food giant will stop using chicken enhanced with human antibiotics. Although the change will likely be costly, McDonald’s executives said the switch will be “an investment” in better quality.
As reported by Reuters, McDonald’s shares increased an estimated 10 percent since Easterbrook took over, and another 0.8 percent following the announcement about switching to chickens without human antibiotics.
Unfortunately, McDonald’s sales have continued to plunge. In recent months the fast-food giant streamlined their menu and increased their focus on fast and accurate service. They have also explored offering customized burgers, and have emphasized their “I’m lovin’ it” advertising campaign.
Dieter Waizenegger, CtW Investment Group executive director, said the “… disappointing numbers underscore the widespread reforms McDonald’s requires… and these changes must go beyond new management to include refreshing its stale and insular board.”
During an interview with Business Insider, marketing research executive Darren Tristano said McDonald’s needs to focus on three points: cleaning up their restaurants, increasing the accuracy and speed of service, and offering better-quality foods.
me: i want to lose weight me: i want skinny legs me: i want a flat stomach me: i want to be thin me: *eats mcdonalds*
— Funny Quotes (@FunnyQuotees) March 10, 2015
A majority of McDonald’s locations continue to use their signature colors and decor. Although it is nostalgic, the decor is criticized as outdated. Experts suggest that McDonald’s biggest competitors have seen better success with modern decor.
Although McDonald’s has increased their focus on accuracy and speed, it simply is not enough. The fast-food giant is currently exploring the possibility of adding self-serve kiosks and table service, which will further increase accuracy and allow for more customized orders.
Nobody going to McDonald’s wants kale, and nobody who eats kale will go to McDonald’s. http://t.co/xgzTqjxDfl
— Joseph Weisenthal (@TheStalwart) March 10, 2015
In recent years, McDonald’s began offering their customers gourmet coffee drinks. They also added several healthier menu options. However, Tristano said the company needs to increase the availability of healthy choices.
As McDonald’s sales continue to plunge, Chief Executive Officer Steve Easterbook has vowed to make the necessary changes to remain competitive in the fast-food market.
[Image via Scott Olson/Getty Images]
