The fast food change firm is following a turnaround plan, but analysts believe that this might not be the right way to bring about a positive change in the firm.
Analysts in the food industry are still looking at McDonald’s Corporation as one of the biggest successes seen by the businesses being carried out in the United States of America keeping in mind it started in the 1940s from just a mere burger stand. Currently, the food giant has around 35,000 outlets all over the world which can be seen as nothing but sheer success. It has also been seen by the analysts that no matter what, the firm is represented America in countries all over the globe with the kind of food it sells.
However, there are some issues that groped McDonald’s business in a much disastrous manner which has resulted in the firm experiencing a difficult position in the financial market. The fact that the increasing competition in the industry in which the customers of the food company showed more interest in other food chains which were offering a more healthy deal became quite an undoing that was not expected by the firm to take place. Also, more and more brands have lately been emerging in the markets that have taken away most of the attention of the customers which was previously only confined to the burger joint.
Things have reportedly become quite bad, so much so that McDonald’s restaurants recently announced that they will be closing down stores all over the globe in order to cut down on expenditures and face the current difficult time on the stock index. According to a recent press release, it was informed that the firm declared in April that it has plans of closing down around 700 stores worldwide, and the task will be completely probably by the end of the current year. As per a report published by Associate Press, the current year was recorded as the first year in the history of the fast food chain in which it has to cut down on so many stores altogether.
Recent news showed that the rival companies in the industry seem to be doing better than McDonald’s business by a mile which is something to be reckoned with, considering the new CEO has applied a turnaround plan to be followed by the firm. Analysts, on the other hand, believe that currently the food chain needs to go back to what it is best at selling and decrease the prices of those food products and deals. Also, in analysts’ opinion, by adopting the idea of customization, the firm is not going in the right direction and it should just focus on something that it knows best.
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