It was not long ago when McDonald’s (NYSE: MCD) decided to make another delicious addition in its already tempting menu. One of the biggest restaurant chains, McDonald’s Corporation had recently launched 'Artisan Grilled Chicken' sandwich with the aim of boosting its sales figures. So did the gamble do any benefit to the company? Well, not in the US at least.
Home market loss
Negative customer traffic combined with heavy competition, marred the company’s position in the market. For the month of May, the sale figures saw a decline of a little over 2 percent in the US (as opposed to the expected figure of 1.7 percent). Thankfully for the company, its global market standing helped it offset the loss in the home market. Globally too, the company reported a drop in its sales, but the numbers were much lesser than what was expected. McDonald’s restaurants saw a dip of 0.3 percent in its sales in the same month, whereas it was expected to incur losses of up to 0.9 percent. The company is said to have benefited from a massive lift in Europe with its value meal deals.
The monthly sales of the company have been observed to be slowing down, if not dipping ever since Steve Easterbrook took up the role of its Chief Executive. The decline has been continuing for one year now, as per Consensus Metrix's research.
The global chain is certainly going through a bad phase, but has a strategy in place to get back its grip on the market. It aims to offer exciting menu options for a short time to get back its lost customers and attract new ones. In Easterbrook's words, the company will focus on offering tastier and better food. Simultaneously, it will also be studying ways of extending its menu to make more custom items available along with all-day breakfast offerings.
Easterbrook has already announced certain changes it will be making in its US market, starting with small, but effective amends like making the patties taste juicer by searing the beef to perfection. Looking into the other fronts of the business, he also aims to reorganize the restaurants by their location, look for more franchisees and also reduce unwanted layers in the management.
However, it is not going to be an easy task as the company has about 14,000 chains in the US. Bringing about these changes in all its national chains, while collaborating with its various suppliers is certainly going to take a lot of time, effort and investment.