Mcdonald 's The Biggest Chain Of Fast Food Restaurants

840 WordsJun 5, 20164 Pages
McDonald’s is the biggest chain of fast food restaurants in the world. In 2015, company has 36,525 outlets worldwide in 119 countries (MCD Annual Report 2015, 2016, p. 13) serving more than 70 million customers on daily basis (Mackey, 2014). McDonald’s is operating in Informal Eating Out (IEO) segment (restaurant industry) and though it is the top brand in the world, year 2014 was difficult for the company. The global sales of the company dropped by 1% and operating income decreased by 4% (MCD Annual Report 2014 , 2015). McDonald’s brand image was negatively reported for unhealthy food and obesity among its consumers. McDonald’s is taking initiatives to improvise its menu, quality of food and the source of it. In a way, the company is also targeting different market segments and consumer age groups by ads and promotions and creating an emotional bonding with the brand (Blakely, 2012) (Dhaliwal, 2015). McDonald’s current market share is valued at $121.17 as of 06/02/16. Since the company is operating in the informal eating out (IEO) segment, it can have short or long term impact of high emerging competition from new restaurants and from traditional and non-traditional markets such as coffee shops, convenience stores, etc. Some of the major competitors of McDonald 's are Dominos, Burger King, Yum Brands Inc., Chipotle Mexican Grill Inc., Wendy’s, Subway and Taco Bell (© Copyright 2016 Morningstar, Inc., 2016). Opportunities and Threats Opportunities -Growing foodservice
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