Why McDonald's Is Stalling and What It Should Do Now

Shake Shack burger courtesy goodiesfirst under Creative Commons license.

In this last of a three-part series on McDonald's corporate strategy, Fool contributor Asit Sharma identifies the single biggest threat to McDonald's growth prospects and identifies a potential flaw in the company's strategy that leaves it vulnerable to this threat. 

In the video below, Asit explains why McDonald's approach to its currently stalling growth is not as nuanced as it could be. He also discusses a viable solution going forward. If you're a long-term investor in McDonald's, be sure to also check out parts one and two of this series for an in-depth look at the company's strategic efforts to regain its momentum in the quick-service restaurant industry.

Would you like to learn more about McDonald's and two other great American companies?
Profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it's gone.


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 31, 2013, at 9:04 AM, guidyy wrote:

    I dont know in the US, but here in Italy they should start selling burgers that doesn't actually taste like the container.

  • Report this Comment On October 31, 2013, at 5:13 PM, CharlieTav wrote:

    MCD is starting in 2014 to sell package coffee and K-cups in grocery stores; marketed through Kraft. This will be a test market that could eventually lead to selling in their own restaurants. Kraft manufactures its own K-cups; this could be a negative for GMCR. It is not clear if the K-cups are going to come directly from Kraft

  • Report this Comment On October 31, 2013, at 7:26 PM, TMFfinosus wrote:

    guidyy,

    The company certainly has to think about how to offer fresher, better-sourced foods to counter perceptions like the one you stated. I'll have to try out MCD if and when I can make it to Rome.

    Best,

    Asit

  • Report this Comment On October 31, 2013, at 7:28 PM, TMFfinosus wrote:

    Charlie,

    Thanks for commenting. I'm curious about this too, and will hopefully write about the packaged coffee in the near future. Also a peripheral threat to SBUX, DD, and others. It's getting crowded on grocery store coffee shelves!

    Cheers,

    Asit

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2704592, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:29:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement