McDonald’s Profit Little Changed as U.S. Sales Slide
McDonalds, the world’s largest fast food restaurant fell 2%, the biggest drop since November 8, 2012. As McDonald’s competitors are rapidly growing, McDonalds need to keep up. An analyst says that the company needs more new products as their competitors are introducing many new products that are closing the gap between competitions. Burger King recently introduced their new turkey and veggie burgers while Wendy’s introduced their all new flat-bread grilled-chicken sandwiches. In the past Chief Executive Officer of McDonalds, Don Thompson have tried to gain more customers with their appealing dollar menu but the company’s sales still seem to be falling. Their new strategy to stay competitive with their competitors is to roll out more new products such as the new Fish McBites, new premium snack wraps and a new breakfast sandwich with low calories.
It is important for McDonalds to introduce new products if they want to stay competitive with their competitors because consumers like variety. Introducing new products is not hard, but introducing new products that distinguish your company from the competitors is. That is why the Big Mac is associated with McDonalds while the Whopper is associated with Burger King. Although the sales of McDonald’s are sliding, it could be a positive sign for the economy. People are doing better so they would eat less fast food.
Written by: Wilson Tang