Apparently, people aren’t “lovin’” McDonald’s the way they used to. The fast food giant had previously planned on closing 350 stores across the United States, China, and Japan. According to Fortune, “sagging profits” are to blame, and it was hoped this step would be enough. [1]
But it wasn’t enough.
It was recently announced that McDonalds will be closing hundreds of stores worldwide, as global sales continue to take a free fall. To begin the year of 2015, the infamous fast food chain will be closing at least 700 of its locations, which is double the number that was planned for closure earlier this year. [2]
McDonald’s CFO Kevin Ozan told analysts that the shuttered stores in China, where comparable sales fell 4.8% in the first quarter, had been underperforming for years. In Japan, where McDonald’s is still reeling from the food safety scare last summer, the stores closed stores were “heavy loss maker restaurants.” As for the U.S., comparable sales were down 2.3%, one of their biggest drop in years as chains like Chipotle ate into sales.
McDonald’s is struggling to compete with smaller, more agile fast food chains like Shake Shack and Chipotle. It’s sales were down $5.9 billion in the first quarter, down 11 per cent on the same quarter last year. Global sales were down 2.3 per cent, with big losses in Asia, the Middle East and Africa and in the US. [3]
Steve Easterbrook, the company’s new CEO, speaking in a conference call with the Wall Street Journal, said that massive changes will be needed to improve McDonald’s struggling reputation.
“I think there is a hunger and an interest in our business to embrace change. McDonald’s management team is keenly focused on acting more quickly to better address today’s consumer needs, expectations and the competitive marketplace,” Easterbrook said.
But he really faces a big challenge, especially with regards to the negative perception that seems to be in the minds of people who now view McDonalds as fattening food and are increasingly preferring organic foods.
Sources:
[1] http://www.inquisitr.com/2035926/mcdonalds-is-closing-hundreds-of-stores-find-out-why/
[2] http://www.trueactivist.com/mcdonalds-shuts-down-hundreds-of-stores-worldwide-as-sales-decline/
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Here’s a thought Macs, how about giving up on the engineered food and go all the way back to your beginnings. You know when you used real food and kept it simple…a hamburger made from real beef, with ketchup made from real ingredients, fries made from non modified potatoes cooked in real animal fat…and malts, made with real malt, real ice cream. Weird I know, but you could be onto something here!
What Paul said^^^^^^^
And maybe train ya crews better. I want my big mac just like the one pictured. None of this brown lettuce or no lettuce shit. 🙁 I wanna get value out of my money.
I’m with paul on this one, maybe if McD’s went to a simpler place and time(even as an 90’s kid they had less junk despite the increased use of chemicals) they would realize what a considerable chunk of their customer base wants.
All very good points Paul! People want real food grown with real soil and water!
Paul, you are a fool. Engineering food makes it better. Would you ride a train that wasn’t engineered? Would you Paul? No, because without engineering trains would not even exist, and if you want to live in a world without trains you are not only a fool, but likely racist.
No, you jerk! You don’t get to make Paul’s McDonalds post about race!!!! Shame on you!!!!!
Right! “Engineered” food will be the death of us. We don’t consume trains you silly person. Keep on engineering non-food things, please… to try and make something racist from Paul’s remark makes you an instigator.
Comparing a train to a hamburger ? You may not be a racist, but you are definatly a Moron.
what John said – seriously Stavros; it would be most fascinating to understand your logic in your comparison – or entertaining anyway
Be careful. If you come to understand what John wrote, you are on your way to a walk of insanity. The elements inside his head are not connected.
You don’t eat trains!! Idiot!!
You are an idiot that made no sense
It’s called an analogy you fools.
how is the making, what you consider, an inferior product racist? Do you even know what racist means? Get a grip on reality chops.
It’s inevitable. More fast-food chains and other restaurants will follow. People don’t want the garbage this country permits corporations to sell that they call “food.” What a shame that the health and safety of Americans is the last thing on people’s minds, and the FDA is in bed with the corporations. People are getting smarter, and also want better-paying jobs here. As for places like China, what did they expect? They make junk and I would be afraid to eat their food there. Worse yet, America lets them ship their stuff here. Pets dying from tainted dog foods, etc. When corporations get too greedy, in the end they will suffer.
Is there a reason why percent is written as two words? Per cent is really not the same meaning as percent.
They aren’t leaving just because of your horrid food Ronald. They are leaving because treat your employees like dirt and have even stolen from them. Good riddance to you Ronald. Your food sucks and so do your C.E.O.S
Just another domino in the crash of America.. its crumbling internally from political corruption and ineptness, from civil unrest caused by the disenfranchised lower demographic citizens as a result of their racist police force and broken system, right through to its economic and foreign policy. People, even their own citizens, are finallt waking up to their war mongering, imperialistic, selfish ways where whistle-blowers are jailed for exposing the truth and the string-pullers continue to sip their cognac in denial as America is crumbling all around them. The U.S is no longer the worlds super power and its demise will be a drawn out affair with a lot od blood shed.
Besides the low salary, modified food, crappy service and sanitation. What else could be the reason? Yeah I’m pretty much with Paul.
McDonald’s is failing cause of the BDS movement
People want what Paul said, simple, honest, tasty food. But McD’s won’t offer that at the price point they did back in the day. People won’t want to pay the price.