Is McDonald’s in a Downward Spiral?

McDonald’s reported its worst month of earnings in the past decade

Is McDonald’s in a Downward Spiral?
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Both in America and abroad, the popularity of the biggest chain fast food company in America has taken a nose-dive.

McDonald’s has taken a hit in the past several months, both from fierce competition from other fast service restaurant chains like Chipotle and Taco Bell, and internationally after a rancid meat scandal rocked China. This month, McDonald’s reported its worst monthly financial results in more than a decade, with a sharp drop of more than 2.5 percent. Although there are reports that this is mostly due to the ban on meat in Chinese McDonald’s, the fast food giant has actually struggled all year. Overall, McDonald’s has seen a slight decline in profitability nationwide.

Oddly enough, the company’s drop-off in profitability actually occurred during McDonald’s sponsorship of the World Cup according to Nation’s Restaurant News, during which they inundated traditional and social media outlets with campaigns on “futbol.”

It is possible that McDonald’s is part of the old regime of fast food giants, as newer companies like Taco Bell get ahold of breakfast, and as fast casual chains like Chipotle continue to show steady growth. Chipotle’s earnings have jumped 24 percent since last year.

“Going forward, McDonald’s is undertaking recovery strategies to restore customers’ trust and confidence,” McDonald’s said in a press release.

For the latest happenings in the food and drink world, visit our Food News page.

Joanna Fantozzi is an Associate Editor with The Daily Meal. Follow her on Twitter@JoannaFantozzi

 

 


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