January 24, 2013- MacDonald’s Corporation (MCD) has enjoyed continuous success for so long as the world’s largest hamburger and fast food chain that it must be difficult for the company’s executives to deal with the slowdown and retraction in its business and its sales that has been occurring recently.
The giant company eked out a profitable fourth quarter, which ended on December 31st, by resorting to an old marketing ploy. The firm heavily advertised its famous Value Menu as a way to lure consumers back to its restaurants.
The tactic worked, but a company executive issued a public statement earlier this week saying that he expects food sales to falter in January.
The downbeat forecast reflects a new reality for MacDonald’s. Its competition, chains such as Burger King and Wendy’s, is no longer satisfied to play “second fiddle.” Their inventive changes and additions to their menus are converting some former MacDonald’s customers.
The world’s number one food chain is, of course, fighting back with a revamped and extended Dollar Menu.
The results are not there at this point. Sales in Europe dropped to their lowest level in ten years in November. Sales in the United States were down, too.
The reduction in sales and in profits created a casualty. The president of the company’s United States operations was dismissed from his position.