Mcdonald's Essay

1585 Words Dec 9th, 2014 7 Pages
McDonald's Faces 'Millennial' Challenge by: Julie Jargon
Aug 25, 2014

TOPICS: Change; Competitive Positioning
SUMMARY: McDonald's is losing its luster with younger consumers. Customers in their 20s and 30s are defecting to competitors, in particular so-called fast-casual restaurants like Chipotle Mexican Grill and gourmet-burger chain Five Guys. Younger diners are seeking out fresher, healthier food and chains that offer customizable menu options for little more than the price of a combo meal.
TERM PAPER APPLICATION: In analyzing the predicament, it is vital to cite facts and numbers, not just subjective impressions. To start with, Consumer Reports magazine said that in a survey of more than 32,000 subscribers, readers rated
…show more content…
In the U.S., with more than 40% of McDonald's 35,000-plus global locations, sales at restaurants open at least 13 months have been flat or falling for most of the past year.
The hamburger giant on Friday announced it was replacing the head of its U.S. division for the second time in less than two years. The company tapped a former executive, Mike Andres, to take the helm of the domestic business—another sign that the company is trying to revive its fortunes at home.
McDonald's stock has traded in a relatively narrow range in the nearly 26 months since Chief Executive Don Thompson took the helm, while the share prices of many of its rivals have soared. McDonald's shares are down about 2% since the start of the year, closing at $94.45 Friday.
Demographics help shed light on McDonald's woes. Data compiled for The Wall Street Journal by restaurant consultancy Technomic Inc. point to an age problem for the chain. Customers in their 20s and 30s—long a mainstay of McDonald's business—are defecting to competitors, in particular so-called fast-casual restaurants like Chipotle Mexican Grill Inc. and gourmet-burger chain Five Guys Holdings LLC.
Increasingly, younger diners are seeking out fresher, healthier food and chains that offer customizable menu options for little more than the price of a combo meal.
The percentage

More about Mcdonald's Essay

Open Document