- McDonald’s sales are shrinking due to competition from other fast-food joints. Despite the decrease in sales McDonald’s claims that its market shares are increasing.
- Higher labor and commodity costs shrink margins. The American strategy of cheap and affordable food is hurting the company, 14% of McDonald’s sales come from the Dollar Menu.
- Customers are moving toward fast-casual restaurants over fast-food restaurants. Restaurants such as Chipotle Mexican Grill (CMG) and Panera Bread (PNRA) are drawing in potential customers.
- Europe makes up a third of McDonald’s sales, but the country is distancing itself from burgers. McDonald’s sales in Europe were down 0.1% from last year.
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