Understanding McDonald's: Comprehensive company primer and profitability analysis (Part 14 of 21)
McDonald’s has unfortunately made itself out to be a family-friendly low-cost restaurant in the fast food business. In recent years, it has tended to broaden its scope to appeal to more customers.
There were months this year when McDonald’s had more than half of U.S. families visit a local franchise or store-operated store, including March.
In recent years, due to declining sales, the company has started to include healthier options in its menu. It has tried to keep its target market narrowed down to families, but it aims to attract other segments as well. It focuses on cutting delivery times and reducing costs. Its computer-operated machinery helps save costs, as it can be run by fewer employees. Some McDonald’s locations also have a dual drive-through to decrease waiting time and increase the volume of customers served. The company has included play areas in many of its restaurants, and its marketing schemes feature family-friendly ads and slogans. The term “Happy Meal” is popular and has become a household name.
Browse this series on Market Realist:
- Part 1 - McDonald’s global business model, the “three-legged stool”
- Part 2 - What is a franchise and how do McDonald’s franchise agreements work?
- Part 3 - How important are franchise revenues to McDonald’s?
- Consumer Discretionary