Yesterday, the HuffPo said that despite Big Macs being cheap, McDonald’s sales and profits decreased, with McDonald’s earnings falling by 30 percent. BBC reports said that although the company’s sales fell in Russia, Germany, and especially China after a scandal over meat supplies, the key reason for the poor numbers is low sales on the home front. Earlier, experts speculated that McDonald’s sales plummeted because lower-income Americans suffered from the weak economy; therefore, they weren’t able to afford eating out at McDonald’s. However, this could be a false conclusion, as Bureau of Labor Statistics data published by HuffPo showed that McDonald’s menu prices grew only by a mere 4.8 percent between 2009 and 2014, whereas prices at other fast-food eateries rose anywhere from 6.7 to 16.9 percent. Despite higher prices at other fast-food eateries, their sales actually increased. Therefore, the issue plaguing McDonald’s may be its falling reputation. According to the HuffPo, the commonly held perception is that McDonald’s food isn’t worth eating at any price. Now, CNBC News reported that McDonald’s is trying to re-brand itself as a seller of fresh and good quality food by introducing “transparency initiatives”, such as last week’s campaign asking customers to submit their opinions about the company’s food.
24 October 2014
We prefer to eat at Burger King… the food tastes better… full stop. Mickey Dee’s is all over the place, but we prefer to buy food on the road that we can TASTE. Besides, everyone knows how Mickey Dee’s abuses and underpays its help… it’s the Republican Party Paradise writ large. Now, that I have the Burger King app on my tablet, I’ll never have to stop at McClown’s again (Friendly’s is a good bet on the road, too)!