McDonald’s Corporation (MCD) Overhauling Menu To Revive Sales


McDonald’s Corporation (NYSE:MCD) is the largest fast-food chain in the world, but it is not going through good times. Both profits and sales are on a constant decline quarter after quarter. Therefore, the company has plans of overhauling the menu they serve in the U.S.

The fast-food company hopes that their business will be reinvigorated with more customizable options and items that appeal to regional tastes. “In some of our markets, the reality is that we haven’t been changing at the same rate of their eating-out expectations,” chief executive Don Thompson said Tuesday.

Global taste at local restaurants

There are a number of fast casual places that are giving tough competition to most of the fast-food chains. The reason behind their success is that they always serve fresh and healthy ingredients. Also, they offer their customers a wide variety of toppings and ingredients. Of those Chipotle is one.

‘Create Your Taste’ program has already been launched by McDonald’s Corporation (NYSE:MCD) in some of the restaurants for experiment purposes. Under this program, the customers can build burgers by selecting the toppings and buns of their choice. Next year, this option will be rolled out in the United States more widely says Thompson.

The international product pipeline of McDonald’s has a wide variety of items in its menu and items from that will be available for serving to the customers at the local restaurants.

McDonald’s contradicting own goals

Making the menu simpler was one of the goals of McDonald’s Corporation (NYSE:MCD) and by adding these options to its menu it has contradicted that. The new menu has brought few negatives with it as well. The executives find it unwieldy as it creates a lot of confusion for the customers, as well as for the workers, who cook and prepare the food.

The menu at McDonald’s will get simplified after a number of items that are not so popular and sell less will either be removed completely or their preparation will be made easier as informed by Thompson. But doing so will not be that easy as the company also plans to offer their customers more regional items and do-it-yourself options.

McDonald’s dismal performance has put it under massive pressure to turn things around as its profits for the last quarter declined by almost 30% on YoY basis.