McDonald’s (NYSE:MCD) Can Reverse their Bad Run through McOrganics
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McDonald’s Corporation (NYSE:MCD) is having a horrendous year. Its sales are on a constant downward spiral, it‘s losing its charm among the younger generation and on top of that its image has deteriorated in the past years. Gone are days when the younger generation used to swarm at McDonald’s (NYSE:MCD) and celebrate their birthdays.
The colors, the atmosphere, and the convenience- everything suited them. Plus since they weren’t old yet and cholesterol didnt bother them too much. That generation has grown old now while Mcdonalds still seem to be in a reverie of the past. McDonalds Corporation’s (NYSE:MCD) last slump was in 2003, and that too was because of the same reason: people opting for healthy food rather than fast food.
That was an indication of things to come, but Mcdonalds didn’t take any lessons from that and went on with small changes in the menu, discounts and incentives. It couldnt or didnt want to pin point the change in eating culture, in fact they chose to remain oblivious to it.
McDonald’s Corporation (NYSE:MCD) knows what the problem is, yet somehow it is chosing to admit it can be wrong. While McDonalds were losing the older generation they couldnt keep the younger generation loyal to them who also deserted the fast food chain. The younger generation which is 13-25 years old has adopted healthy eating habits as well.
The tide is rushing against McDonald’s Corporation (NYSE:MCD). Trends have changed, eating habits have changed; the whole culture has evolved. Instead of spending heaps of finances on advertising and expanding its menu to no avail, McDonald’s Corporation (NYSE:MCD) should open a separate chain of Whole Foods altogether, McOrganics.
Launching a separate chain will bring revenue as well as the lost glory of the fast food chain. McOrganics will help McDonald’s Corporation (NYSE:MCD) revive not only its sales but also its brand. McDonald’s Corporation (NYSE:MCD) has become the victim of a changing culture and it needs to evolve as well. How can it expect the company to excel by its redundant strategies?
This quarter, McDonald’s Corporation (NYSE:MCD) posted their lowest ever earnings in 10 years which has shocked the analysts even. The company is probably low on morale too, and by the look of things it is quite clear that McDonald’s Corporation (NYSE:MCD) has absolutely no idea how to tackle this slump. It has been making absurd decisions in haste, and is definitely in a state of panic.
The only thing for McDonald’s Corporation (NYSE:MCD) to do now is to focus on the core problem, rather than taking wild guesses about what could work. The problem is definitely its image and how its food is perceived. McDonald’s Corporation (NYSE:MCD) needs to reverse that image and associate it with health. If not that, then the least it can do is self implode. Wasting money on advertising and celebrities won’t do any good to the fast food chain. Complete revitalization is the key.