McDonald's, in response to fewer global consumers "lovin'" their restaurants , promised on Monday to transform itself through 'modern' makeover. This is due to a recent United States and global sales drop, and competition from restaurant chains such as Chipotle and Chick-fil-A, which has created an "urgent" need for change.
McDonald's former CEO Don Thompson resigned from his post after a 4.1 percent drop in customer traffic, in 2014. He was replaced by Steve Easterbrook, who returned to McDonald's in 2013 and then on March 1 became the new CEO.
Easterbrook announced last week that McDonald's USA would use chickens that were raised with fewer antibiotics. This will make the chain more in line with other restaurants such as Chipotle and Chick-fil-A.
Sales at McDonald's USA restaurants open at least one year dropped 4 percent in February, while global sales fell 1.7 percent, according to Reuters.
Meanwhile, McDonald's sales' also slid 4.4 percent in Asia-Pacific last month, where a recent issue with suppliers arose, according to Financial Times.
There was some good news from Europe, where sales inched up 0.7 percent. However, even there Russia's consumer protection agency is investigating the Golden Arches.
In response to such generally negative figures, McDonald's has been simplifying its menus, giving more power to restaurant operators on issues such as regional menu options, and testing customized hamburgers and sandwiches.
The main problem McDonald's has been facing is restaurant-goers' growing demand to have healthier and fresher options. It has been losing customers to restaurant chains with more customized menus, such as Chipotle and Subway.
However, some experts argue that wholesale changes are also needed for McDonald's board. Dieter Waizenegger, of CtW Investment Group, argues that the restaurant chain's board is "stale."