Bidness Etc - Reasons of McDonald’s Financial Downfall

The downturn that the McDonald’s Corporation (NYSE:MCD) has been facing for the past 2 years has brought the company down in the market by a mile. Since the FY13Q4 earnings report received, the company has observed a downfall of 7% in these past quarters, in the total revenue as compared to that of the fiscal year 2013.
The rising competition in the market has said to be one of the main reasons behind the declining state of the shares of the famous corporation. Reportedly, yearly revenue of the company has not seen a high since 2013. Financial analysts opinionated on the subject, claiming that the downfall of the company could result in providing the necessary nudge they require to climb out of the ongoing crisis. The company is yet to report a single quarterly earnings’ growth since 2013.
One of the many reasons that have been observed for the downfall of McDonald's are that, that now people have lessened their junk food diet and are more inclined towards healthier food. The increasing number of diseases caused by fast food intake has made the customers change their minds about it and switch towards a cleaner diet. The customers are more attracted towards food chains that provide foods that are not fatty and unhealthy, but prefer eating fresh, organic produce.
Another reason why McDonald’s is facing such a crisis, is because of the scandal that took place in China which accused the food-chain company of using meat that has been expired in their products, creating much distrust and skepticism among the usual customers. This defamation of the company highly affected its Asian franchises, especially the one’s present in China and Japan.
Amid the challenging times that McDonald's is facing, the CEO of the company has decided to step down from his post and will retire by the end of February. In a recent press release, Donald Thompson announced his retirement and said that even though he’ll miss the McFamily, it’s the right time for him to end his 25 years at McDonald’s Corporation. Current Chief Brand Officer, Steve Easterbrook will be decidedly replacing Mr. Thompson. These changes in the company will take place by the 1st of March this year.
Financial analysts have predicted that the results of Thompson’s retirement are going to have a good effect on the company’s business. However, the negative image that has been created about the company needs to be changed in order to increase sales and attract old and new customers alike.