McDonald’s Corporation (NYSE:MCD)’s has easily penetrated into the global market for fast foods. America’s leading fast food chain, has found its way into 119 countries and still growing! Back home the company’s head Office in Illinois, is still an old fashioned typically American building where areas within the building are named after the foods on the menu. From the hallways called, McNugget Aisle 2 to the French Masterpieces everything has a Mac name. Even in the ‘Grand Jatte’, a woman is seen carrying a McDonald’s Corporation (NYSE:MCD)’s take- away carry bag.
McDonald’s Corporation (NYSE:MCD) has shaped the way the country eats. With record sales of $34.2 billion, it is more than the sales of Starbucks Corporation (NASDAQ:SBUX), Subway and Wendy’s put together.
First time in nine years this Nov. the company reported fall in sales, this led to Jeff Stratton, being appointed as the new president.
Despite its super success, Macdonald’s is constantly being scrutinized for its unhealthy meals. In 2007, a documentary called ‘Super Size Me’ showed the ill effects of being on a McDonald’s Corporation (NYSE:MCD) meal only for a month. This led the company to discontinue its use of beef treated with ammonia also known as ‘pink slime’. The judge dismissed a lawsuit against Macdonald’s accusing it of enticing kids with toys in the Happy Meals.
McDonald’s Corporation (NYSE:MCD)’s efforts are on to change its image to a healthier one. It has cut down the sodium levels by 11%. It offers apples and smaller fries in the Happy Meal and has introduced healthy options like Fruit Maple oatmeal. According to a new law passed by Barack Obama, in Sept. the company will be required to post calorie counts on its menus.
McDonald’s Corporation (NYSE:MCD)’s continues to thrive in this dual environment. Even though America simply loves McDonald’s Corporation (NYSE:MCD)s, the company does not rest on its past laurels. It is constantly experimenting with new healthy meal options. The healthier options are not necessarily tasty, and hence the McLean Deluxe fared well in the test market but failed otherwise. Jeff Watson, vice president of menu innovations for McDonald’s Corporation (NYSE:MCD)s agrees on introducing new healthier options but agrees with consumer suggestions to not make changes in their core menu of Big Macs and French fries.
Despite all talks of healthy options the people in general do not prefer the healthy options and hence the company exercises a lot of caution in introducing healthy options. For example, the egg-white sandwich on wholegrain bread is now going to be first tried in just a few restaurants or markets for a limited time. The veggie burger flopped and the new burger being introduced in American markets is a Cheddar Bacon Onion Angus, which has 41gms of fat.
Moral of the story is though people want healthier options they are not ready to compromise on the traditional fully loaded recipes. Like Jeff Watson says, ‘the healthier items only make the customers feel good about their brand. Despite a choice of healthy options they will stick to their old burgers.
McDonald’s Corporation (NYSE:MCD)’s was up by 1.16% to close at $89.91, shares of Starbucks Corporation (NASDAQ:SBUX) were up by 2.29% to close at $54.58.
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