The McDonald’s Corporation is pushing a new marketing strategy aimed to highlight their freshly
cooked breakfasts as completion grows amongst other fast food chains. The battle has reached a boiling
point recently when Yum Brands Inc.’s Taco Bell starting serving breakfast last month starting with
the Waffle Taco, a move that has prompted rival fast food joints to add new items or even discount
breakfast items.
The Chief Executive Don Thompson of McDonalds has stated that they have yet to see any bearing
from Taco Bell’s new morning menu, but that the amplified race “forces us to focus even more on being
aggressive in breakfast.”
Mr. Thompson’s statements were issued after McDonald’s released a report of profits dropping for
during the first three months of 2014-5.2% from the same time one year ago. U.S. restaurant profits
open over a year have overall dropped 1.7% for the quarter and 0.6% for the month of March, making
that five months in a row for the company. Globally, sales have risen 0.5% during this quarter as well as
month.
Mr. Thompson admitted that the corporation has lost some importance with consumers and menu
change is warranted to strengthen business. Thompson stressed that McDonald’s is committed to
steadying crucial markets like the United States, Germany, Australia, and Japan. Thompson pointed out
that in the fast food race, McDonalds has always come out on top in 35 years of business and “we don’t
plan on giving that up.”
McDonald’s has plans to run upcoming adverts informing customers that it actually cooks breakfast
unlike the many in competition. “We crack fresh eggs, grill sausage and bacon,” the CEO stated. “This is
not a microwave deal.”
Besides revamping breakfast, the fast food giant has plans to further marketing on their staple
menu items like the Big Mac and their french fries. Those two products alone make up for over 40% of
McDonald’s sales. In an effort to further serve customers faster, the company is adding measures for
staff to be more efficient such as additional prep tables for customizing specific orders.
The corporation also has intentions of selling more company-owned stores outside of the states to
foreign franchises. 81% of McDonald’s over-seas stores are franchised. Royalties from the franchised
locations provide for an unwavering income for the corporation.
McDonald’s dropped from $1.26 a share to $1.21 a share in one year. The corporation accredits this to
a decrease in income-tax benefits last year.
from Steve Kaplan, The Entrepreneur http://ift.tt/1spPqh5
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