Swot Analysis Of Mcdonald's Vs. Burger King Essay
That model was a smashing success--for about a decade. Then America's tastes began to change, and the Golden Arches changed with them. As cars lost some of their romance, indoor restaurants took over. When adults became bored with the menu in the 1960s, a new sandwich called the Big Mac wooed them back. As consumers grew weary of beef, McDonald's introduced bite-size chunks of chicken in the early …show more content…
For a company that enjoyed sizzling growth for five decades based on its ability to read and shape popular trends, the breadth of its problems is astonishing. Since 1987, McDonald's share of fast-food sales in the U.S. has slipped almost two percentage points, to 16.2%. The drop has come even as the company has increased its number of restaurants by 50%, far outpacing the industry's expansion rate. The result: Domestic sales have climbed only 18% since 1989, while operating profits haven't even kept pace with inflation. They've risen just 2% a year in that period. That trend has slashed U.S. per-store profits by 20% since 1989--or a huge 40% after inflation. Meanwhile, nearly every other top consumer brand, from Disney to Marlboro, has prospered.
''MENU TWEAKING.'' McDonald's has chalked up that dismal record despite the fact that it owns one of the best known brands on the