How McDonald's Can Recover in 2014

The McRib sandwich couldn't save McDonald's (NYSE: MCD  ) this time. The fast-food giant just reported a nearly 1% dip in sales for the month of November. That follows a disappointing October, when the introduction of Mighty Wings and a new flavored coffee failed to boost revenue in the United States.

In the video below, Fool contributor Demitrios Kalogeropoulos puts the company's latest sales numbers in perspective, noting that the overall fast-food market is flat right now. He also argues that McDonald's can return to industry-leading revenue growth next year if it manages to boost customer service levels while also providing some real product innovations.

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  • Report this Comment On December 11, 2013, at 8:48 PM, fegroup wrote:

    Actually, one of the reasons McDonald's menu is so large and complicated is that Wall Street is constantly judging the company on "innovation" which means new products which makes the menu larger. McDonald's dominates the industry because, for their first fifty years, they didn't try to be all things to all people. In an operation built on simplicity "innovation can be a destructive goal.

  • Report this Comment On December 12, 2013, at 9:33 AM, TMFSigma wrote:

    @fegroup - the tricky part is balancing those two goals. You've got to stay fresh and appeal to changing tastes without swamping your franchisees with dozens of limited-time releases that end up bogging down their kitchens.

    As for new's been a decade since MCD introduced the McGriddle, and I think it's overdue for a core innovation like that. Still, if all they manage to do is slim down the menu and cut waiting times, that will get them most of the way there.




  • Report this Comment On December 12, 2013, at 11:02 AM, dlrn wrote:

    MCD has added innovative items to their menu like the McWraps, which are delicious. They also have an awesome dollar menu [you can get a side salad with Paul Newman's Natural Dressing for $1!!!]. Around the holiday MCD sells 12 coupons in a book for $1. Each Coupon buys one item at McDonalds for free!!! There is a coupon for a free ice cream cone, one for a free hamburger, one for a free jug of milk, one for a free bag of apple slices... [which cost the purchaser of the coupon book only about 8 cents for each item]. MCD also gives to charity. It's a great company and well run. It has a dividend yielding over 3% and is trading at a discount to the market [at about 17.5 times earnings]. Yes, the cost of beef may be climbing and that being the case, the consumer will be paying more for beef at the supermarket and at every restaurant EXCEPT at McDonalds. McDonalds has the buying power to purchase beef at a more reasonable cost then others due to it's large size. The rise in the demand for and the cost of beef may very well help McDonalds in the long run.

  • Report this Comment On December 12, 2013, at 11:45 AM, Awebb30 wrote:

    Two words...Shamrock Shake.

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