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McDonald's is hurting from the competition

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At one time it appeared as if McDonald's had unlimited growth potential across the United States. Things are no longer looking so bright for McDonald's. It is possible McDonald’s U.S. growth has ended and will not recover reported 24/7 Wall Street on June 10, 2014.

In May McDonald’s Corp. posted a decrease of same-store sales in the United States. The firm announced a fall of 1 percent. Although the firm has not acknowledged it 24/7 Wall Street says the competition has flanked it in regard to locations and menu. McDonald’s has not come up with a way to overcome these problems and is not seen as likely to any time soon, or perhaps never.

The firm's management has said broad based challenges caused the 1 percent fall in sales in May. McDonald’s is fighting back with service, value and menu initiatives. In May McDonald’s began aggressively promoting the Dollar Menu & More offerings and breakfast which has included a focus on McDonald’s popular McCafé coffee. However, competition from such firms as Burger King Worldwide, Starbucks Corp., Taco Bell, Wendy’s, and Dunkin’ Brands Group Inc. has never been keener.

Although sales for McDonald’s were slightly up for May in Europe and China sales were poor in the U.S. reports Fox Business Network. The firm is up against stiffer competition than ever as it restructures its service and menu items in order to “stabilize results.” McDonald’s was hoping that including healthier snacks on the menu would help with growth. However, it appears we are now watching the fall of McDonald’s from preeminence in the fast food industry as the competition attracts more and more customers.



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