McDonald’s has 36,000 restaurants worldwide and remains a giant within the industry, but things aren’t as great as you would think. Global profits are down by 15 per cent in the last year and are now lower than they were five years ago.
Many people are surprised to hear the giant isn’t doing too well, and just like Tesco, McDonald’s share price has been wretched. In January, the fast food company sacked its chief executive and promoted chief brand officer Steve Easterbrook to take over the reins, and it appears things will get worse before they get better.
In the first three months of 2015, McDonald’s closed down 350 under-performing stores in Japan, the United States, and China, and they are set to close down at least 350 more across the globe. And while 700 store closings this year are just a fraction of the 32,500 or so worldwide, it is still a significant statistic, especially for such an iconic restaurant.
One analyst stated that the fast food chain may need to rebrand in order to become a ‘sexy brand’.
Business analyst and author Michael McQueen described stepping into an American McDonald’s as entering a time machine:
It’s almost like you step back 10 or 15 years.
However, McDonald’s have claimed in the past that their biggest selling point is consistency. People go to McDonald’s because they know exactly what they will be getting.
But it’s a shame they haven’t kept the prices as consistent. Take a look at the prices when McDonald’s first opened in the UK in 1974…