Introduction
McDonald’s restaurants stand among American capitalism’s greatest success stories. Starting out with just one burger stall in 1948, the fast-food chain’s emphasis on quick service and a standardized menu has helped it to grow to more than 35,000 outlets across the world (C. R., 2015) McDonald’s Corp outlined plans for what it called fundamental changes to its business as it reported one of its worst quarterly profit declines in years, driven by problems in nearly every major part of its business. Based on Here’s The Wall Street Journal (2014) "McDonald’s reported a profit of $1.07 billion, or $1.09 a share, for the third quarter, compared with $1.52 billion, or $1.52 a share, a year earlier." So, they made a billion dollars, but it's a lot less than they wanted to make.
Problem background …show more content…
It faces competition from other fast-food chains such as KFC and Sugar Bun which has been gaining market share with a simpler and cheaper version of the McDonald’s menu. As it is being squeezed by more up market "fast-casual" restaurants such as Shake Shack and Chipotle Mexican Grill, which are rapidly growing. They have been luring customers particularly younger ones away from McDonald’s chicken nuggets and chips by offering slightly better quality food, a high level of customization (such as the option to choose the ingredients in a burrito or burger) and some table
McDonald’s restaurants stand among American capitalism’s greatest success stories. Starting out with just one burger stall in 1948, the fast-food chain’s emphasis on quick service and a standardized menu has helped it to grow to more than 35,000 outlets across the world (C. R., 2015) McDonald’s Corp outlined plans for what it called fundamental changes to its business as it reported one of its worst quarterly profit declines in years, driven by problems in nearly every major part of its business. Based on Here’s The Wall Street Journal (2014) "McDonald’s reported a profit of $1.07 billion, or $1.09 a share, for the third quarter, compared with $1.52 billion, or $1.52 a share, a year earlier." So, they made a billion dollars, but it's a lot less than they wanted to make.
Problem background …show more content…
It faces competition from other fast-food chains such as KFC and Sugar Bun which has been gaining market share with a simpler and cheaper version of the McDonald’s menu. As it is being squeezed by more up market "fast-casual" restaurants such as Shake Shack and Chipotle Mexican Grill, which are rapidly growing. They have been luring customers particularly younger ones away from McDonald’s chicken nuggets and chips by offering slightly better quality food, a high level of customization (such as the option to choose the ingredients in a burrito or burger) and some table