Following McDonald's over the past year or so has been very interesting to say the least. Let's face it, the last year hasn't been so friendly to the stock. With a healthier lifestyle becoming the new black, sales have fallen and the stock has been left in the dust. However, the company isn't one that's willing to give up. Last year, they announced several positive changes in an attempt to win back customers, and seem to be on the same track this year. Today, we'll talk about what we saw from McDonald's with regard to their effort to win back customers last year, what we're seeing this year, and what we can expect to see ahead.
What We Saw From McDonald's Last Year
As mentioned above, last year wasn't a great year for McDonald's, in fact, the company struggled in a big way. However, that didn't stop them from making big changes in an attempt to win their customers back. In fact, we saw quite a few. Here are some of the biggest...
- Expanded Menu – First and foremost, McDonald's realized that consumers were looking for healthier alternatives in the world of fast food. So, they expanded their menu to include artisan sandwiches as well as other healthy alternatives, including chicken rather than beef and cutting back on the calories included in their meals.
- Children's Menu – As always, McDonald's didn't forget the kids. In fact, the company made changes to kids' meals, offering healthier alternatives, including the option for apple wedges instead of french fries.
- Expansion – Finally, McDonald's announced last year that it was expanding into the east Asian market. This untapped market had the potential to lead to stronger revenues and profits for the company, which excited investors, pushing the stock up. However, even that push didn't last long in what proved to be a tumultuous year for the company.
While McDonald's worked hard to make changes that would bring new customers in, their efforts seemed to be a wash as the stock continued to fall sharply. In fact, from June to November, the stock took a massive dive, from which it seemed like it would never see support.
What We've Seen This Year
While it is a surprise to many, McDonald's is actually having a pretty strong year in the market this year. At least, the last 3 months have been impressive. One of the big reasons for this is that McDonald's management has announced another string of changes that are designed to bring customers back through their doors. These changes include...
- Improving Service – One of the biggest complaints at McDonald's is poor service. However, the company announced that it is investing millions in the process of improving service offered at their restaurants.
- More Menu Changes – While the company has not gone into detail as to what changes it plans to make, they have said that they plan on more positive changes to the menu.
- Ordering – Finally, McDonald's has also announced the launch of a food ordering app that allows customers to order their food before they make it to their local restaurant.
What We Can Expect To See Moving Forward
Moving forward, what happens with McDonald's stock is really anyone's guess at the moment. That all depends on the result of their efforts to improve service, food delivery, menu options, and the ordering process. However, there's one thing that we do know. The company isn't going to just lay there. They will continue to come up with new plans and implement those plans as effectively as possible until growth happens... that has become clear!
What Do You Think?
Where do you think McDonald's is headed moving forward? Join the discussion in the comments below!