Some fast food chains have had profitable years financially; some chains have had some major economic downturn in recent years. Americans as a whole turn to fast food all too often. Lately, though, the country is beginning to see a slight change. People are becoming more aware about what they put in their bodies, and fast food does not have the quality society is looking for. Because of this, some fast food chains, especially McDonald’s, have been seeing quarter after quarter of declines in sales. With a focus on the economy of the fast food industry in America, this research shows how much money is being lost every day by corporations and shareholders, and where else the money is being spent. McDonald’s has had an unimpressive sales year
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Whole Foods is a natural and organic market that is seeing growth in this time of change. The company saw a huge 10.5% net income growth from 2013 to 2014 (Annual Report 19). Consumers are no longer looking for the quick, cheap, unhealthy meal and stores like Whole Foods are providing a solution to that. Luckily McDonald’s has been open to change, which may help them recover. As far as numbers go, the company has been struggling for a while. In an attempt to turn sales around, McDonald’s has been trying out different business and marketing techniques for consumers recently, including the “Our Food. Your Questions.” segment of their website, and a reintroduction of original characters, like the Hamburglar. Unfortunately for the burger giant, nothing seems to be working. According to the 2014 Company Report, the company recorded a 2.4% decrease in revenue since 2013 and net profit had a whopping 14.8% decrease since 2013 (“McDonald’s” 13). McDonald’s former CEO Don Thompson resigned on March 1st, 2015, after a long fight with the company’s numbers. He was replaced by Steve Easterbrook, who had previously worked as the company’s Chief Brand Officer. He spent time and effort turning around the McDonald’s market in Britain, which turned out very well for him; according to A Sense of Urgency, Britain is “now one of McDonald’s best performing markets” (Urgency …show more content…
Easterbrook has come on as CEO to help turn things around, and has acknowledged that things were tough in the past, which is important for a struggling company. The problem, though, is that no matter how much McDonald’s may change up their menu, pricing, or marketing, they can never change the consumer. Consumers are what make a corporation like McDonald’s so giant in the first place. However, as consumers tastes change, they can cause McDonald’s to crumble just as quickly as they built it up. The controversy now lies in the hands of the consumer. Justin Lahart says in his article, “McDonald’s Goes Hungry Amid Plenty” that consumers are beginning to gravitate to fast food where the quality is much better, and spending more money for it, causing chains like Chipotle Mexican Grill to flourish (Lahart C10). Unfortunately, no matter what McDonald’s may do, at the core they are still a fast food burger joint; and being the biggest one in the world means they aren’t going anywhere anytime soon, but just looking at the Company Report shows customers and shareholders that sales have been declining for a
Whole Foods is a natural and organic market that is seeing growth in this time of change. The company saw a huge 10.5% net income growth from 2013 to 2014 (Annual Report 19). Consumers are no longer looking for the quick, cheap, unhealthy meal and stores like Whole Foods are providing a solution to that. Luckily McDonald’s has been open to change, which may help them recover. As far as numbers go, the company has been struggling for a while. In an attempt to turn sales around, McDonald’s has been trying out different business and marketing techniques for consumers recently, including the “Our Food. Your Questions.” segment of their website, and a reintroduction of original characters, like the Hamburglar. Unfortunately for the burger giant, nothing seems to be working. According to the 2014 Company Report, the company recorded a 2.4% decrease in revenue since 2013 and net profit had a whopping 14.8% decrease since 2013 (“McDonald’s” 13). McDonald’s former CEO Don Thompson resigned on March 1st, 2015, after a long fight with the company’s numbers. He was replaced by Steve Easterbrook, who had previously worked as the company’s Chief Brand Officer. He spent time and effort turning around the McDonald’s market in Britain, which turned out very well for him; according to A Sense of Urgency, Britain is “now one of McDonald’s best performing markets” (Urgency …show more content…
Easterbrook has come on as CEO to help turn things around, and has acknowledged that things were tough in the past, which is important for a struggling company. The problem, though, is that no matter how much McDonald’s may change up their menu, pricing, or marketing, they can never change the consumer. Consumers are what make a corporation like McDonald’s so giant in the first place. However, as consumers tastes change, they can cause McDonald’s to crumble just as quickly as they built it up. The controversy now lies in the hands of the consumer. Justin Lahart says in his article, “McDonald’s Goes Hungry Amid Plenty” that consumers are beginning to gravitate to fast food where the quality is much better, and spending more money for it, causing chains like Chipotle Mexican Grill to flourish (Lahart C10). Unfortunately, no matter what McDonald’s may do, at the core they are still a fast food burger joint; and being the biggest one in the world means they aren’t going anywhere anytime soon, but just looking at the Company Report shows customers and shareholders that sales have been declining for a