McDonald’s In Crisis, Sales Decline Worldwide
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McDonald’s are facing a crisis with sales in steep decline worldwide.
New CEO Steve Easterbrook has said that he plans on unveiling a new plan next month which should stop the mega fast food chains’ crisis from deepening further.
The world’s biggest fast-food chain said sales have declined a massive 2.3 percent worldwide while other chains such as Chipotle have enjoyed an increase in sales of over 10 percent.
Sfgate.com reports:
Already this year, McDonald’s has announced a number of changes in the U.S. including a simplified grilled chicken recipe and curbing the use of antibiotics in raising chicken. Amid ongoing protests calling for pay of $15 an hour and a union for fast-food workers, it also said it would raise wages and offer vacation time for workers at company-owned stores.
McDonald’s is trying to change its image while its competition is taking its customers.
A day earlier, Chipotle Mexican Grill said its sales rose 10.4 percent at established locations during the quarter, as a pork shortage and bad weather damped results. The chain has been enjoying strong sales growth, with executives saying the company is changing the way people think about fast food.
Taco Bell’s parent company, Yum Brands, said the chain’s sales rose 6 percent during the period. The increase was helped by the introduction of Taco Bell’s breakfast menu, which has repeatedly targeted McDonald’s in its advertising.
Meanwhile, McDonald’s is struggling in other regions of the world as well. During the first quarter, the unit encompassing Asia, the Middle East and Africa reported an 8.3 percent drop in sales at established locations, hurt by a supplier controversy in China last year and ongoing consumer perception issues in Japan.
Sales at established locations dipped 0.6 percent in Europe because of softness in France and Russia.
Source: http://truthisscary.com/2015/04/mcdonalds-in-crisis-sales-decline-worldwide/
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