McDonald's is facing market and technological-related challenges as revenues fall. The breakfast menu is no longer bringing in sales, and they look to mobile ordering to reach more customers.
In 2015, US fast food giant McDonald's expanded their breakfast menu and made it available during all hours of the day. According to a news report published by Bloomberg, the decision led to sales soaring for a year long.
Domestic same-store sales reportedly fell by 1.3 percent even though the estimates made by analysts last quarter was proven wrong by McDonald's overall earnings. The company's shares declined by approximately 2 percent after the results were published, wrote Bloomberg.
The challenge for the company at present is to attract the new kinds of customers and provide for their it-must-be-healthy needs. For instance, because of the drop in prices, more people are buying food in groceries and making them at home instead of buying food from restaurants.
As a result, the number of customers that visit McDonald's restaurants has fallen for the past four years, dropping by 2.1 percent in 2016. In an attempt to bring in the new generation, McDonald's is trying to improve the quality of their food by removing artificial ingredients, such as using real butter and avoiding preservatives.
Furthermore, it is also said that they are moving towards mobile ordering in order to keep customers and improve sales. By spending more on technology, they can provide self-serve kiosks in domestic restaurants similar to how it is in the McDonald's branches in European countries like Germany and the United Kingdom.
With an investment in technology, it can compete with other fast food chains like Taco Bell and Dunkin' Donuts. In other news, the recently opened and much talked about McDonald's in Vatican is now giving food to the homeless every Monday. Read more about it here.
