McDonalds and the rough first quarter
McDonald's is struggling according to Markets Insider. CNBC wrote an article that stated “McDonald's new value offering isn't off to a good start, according to one Wall Street firm….RBC Capital Market reduced its sales and earnings estimates for McDonald's shares. The company launched its $1, $2 and $3 menu in January.”” Another article from Business Insider says that "Shares of McDonald's are down almost 5% Friday..."The fast food giant announced its new dollar menu in January in an attempt to win back value minded customers. But that prompted other chains to cut their prices as well". It is very clear that McDonalds needs a new marketing strategy in order for them to come back from their recent loss. Other fast food chains are beginning to catch on and can now start competing against the giant company. "McDonalds is down almost 14% this year". The year of 2018 is now under its third month. This is not a strong quarter to start off with and perhaps it is time to regroup and re asses their outlook as a whole. Although the article says "its long term prospects remain strong" we all have seen what a couple minutes can do to an entire company back in 2008. To be clear, I am not comparing the 2008 crisis to McDonalds poor 3 month performance. I do believe however that McDonalds needs to start doing product renovations and come with new and fresh products that nobody else does. They need to separate themselves and perhaps do even more surveys of consumers.
As of right now, the St. Patrick day Shamrock Shake is currently out and does help improve the business overall. Personally, I did not even realize it was out until the other day. No advertisements, or any message was communicated to me that it was around. I wonder if that is me, or they have not done what they usually do in the past. Analysis all around are listening in to McDonalds struggling and perhaps they have not done what they have needed to do. They are losing customers to other fast food chains. The question that I believe some marketers are asking is what are they doing different? Can they not appeal to customers the way they used to? Are kids asking parents for different food now? Is it the removal of the cheeseburger from th kids meal an issue?
In the CNBC article, it says that “...MCD has experienced a slowdown in the quarter-to-date period amid unfavorable weather and tougher comparisons…” Is there a way for McDonalds to combat weather? Is there something that can be done to counteract the slow of business? Families are leaving the once family restaurant for other options. Perhaps we should look to the future and hope that McDonald's will come with something new and fresh outlook. Something that appeals to the people and consumers. If they do not make a change soon that sets them apart, McDOnalds will begin to see an decline of more than sales loss. Perhaps they will begin to lose the foothold of being the largest food chains in the world.
https://www.cnbc.com/2018/03/02/mcdonalds-shares-drop-after-analyst-slashes-his-sales-estimates-for-burger-chain.html
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