Children peer out the window while eating hamburgers in a Chicago McDonald's restaurant, December 26, 2003. (Photo : REUTERS/John Gress)
McDonald reported a further 2.3 percent decline in its global sales in established markets for the first three months of the year.
The company attributed the slide in its fortunes to the shift in consumer preference towards healthier wholesome food and not the typical fast food fare that McDonald is famous for. Company sources stated they are expecting the negative sales trend to continue in April as well.
Other reasons the company said has added to its woes include the general economic slowdown in Europe along with the emergence of new competitors in the domestic market as well. Taco Bell, Panera Bread and Chipotle Mexican Grill all are witnessing a healthy rise in their profits, much to the chagrin of McDonald.
Towards efforts to revive its finances, McDonald said they would be switching over to chicken raised with less antibiotics, a move that critics claim is long overdue. The fast-food chain also stated they would be revamping their menu as well, which will mark the debut of the sirloin burgers in different flavour.
The burgers will be one-third of a pound and will be priced $5. Simplifying the menu too is on the cards as the company is looking for faster delivery times, mentioned Fortune.
The company's new CEO Steve Easterbrook said he will be presenting a more detailed revival plan on May 4 and exuded confidence in tiding over the crisis.
In the meantime, the world's largest fast-food chain will have to do with 700 less outlets this year as it grapples to cut losses. Of these, 350 stores in the US, China and Japan are out of business already with the remaining 350 under-performing stores set to be closed before end 2015, stated the Time.
McDonald reported a modest 0. 6 percent decline in its sales in Europe but a far more severe 8.3 percent sales plunge in the zone covering Asia, Mid-East and Africa. Overall, the fast-food chain reported a 28 percent decline in its operating profits.
Perception issues arising from last summer's adulteration scandal in China where staff were shown violating hygienic principles isn't helping things either.
