4 Trends That Have McDonald’s Sales Shrinking
by William White | July 23, 2013 11:49 am
Businessweek list the four main reasons McDonald’s (MCD) is looking at a rough second half of the year.
- 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.
Head over here to see the list in full detail.
- [Image]: http://investorplace.com/wp-content/uploads/2012/09/McDonalds185.jpg
- Businessweek: http://www.businessweek.com/articles/2013-07-22/four-reasons-mcdonald-s-is-worried-about-the-near-future
- MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
- CMG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMG
- PNRA: http://studio-5.financialcontent.com/investplace/quote?Symbol=PNRA
- here: http://www.businessweek.com/articles/2013-07-22/four-reasons-mcdonald-s-is-worried-about-the-near-future
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