America’s favorite fast food restaurant for decades, McDonald’s, has been in the news lately. Unfortunately it is not for good news. Its annual sales are slumping year over year and its stock price is hitting 52-week lows. What’s behind all these negative results?
Many think that the quality of food is in question. It is trying to get rid of menu items loaded with fat and calories and stay relevant with certain other fast food outlets that claim healthier food options. Add to the injury, a recent report from the Consumer Reports list McDonald’s at the bottom of 21 other similar fast food restaurants for taste. In order to compete with other fast food chains McDonald’s increased its menu items. This is causing delays serving customers and lots of preparation mistakes. Industry trade magazine QSR reports that average drive-thru wait time increased by about three minutes at McDonald’s. Supplier problems caused China sales to drop and in Russia several locations have been shut down by the government regulators last year over food safety concerns. Labor unions are fighting with the McDonald’s management demanding higher minimum wage for its hourly workers. All these are causing many loyal customers to ask the fast food giant to go back to its basics.