McDonald’s global woes hit home

McDonald’s is to restructure its business as it struggles with its brand image, market position and unpopular menu changes

DOW JONES SHARE INDEX

May 4 close: $96.13 (after hours: $95.89)

20 30 40 50 60 70 80 90 100 110 $

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2006: McDonald’s sells 90% stake in Chipotle Mexican Grill chain for $1.5bn. Today worth $18.8bn and major rival to McDonald’s

2012: Global revenue falls for first time in nine years

2014: Asia tainted chicken meat scandal

2015: Steve Easterbrook becomes third CEO in 10 years

2014: Global net income falls nearly 15%

First quarter, 2015: Global earnings down 2.3%

GLOBAL CHALLENGES FACING MCDONALD’S

U.S.: Rival fast-food outlets capitalising on demand for healthier food, made with fresher, natural ingredients

Europe: Sales hit by high-end burger chains and outlets focusing on Mexican and Japanese food

Latin America: Deepening economic crises, and problems catering to local tastes better provided for by smaller local competition

Russia: Half of its 440 McDonald’s restaurants under investigation for
health and safety failures, amid deteriorating relations with U.S.

Japan: Customers angered by cost-cutting measures and concerns over food hygiene

China: Customers still wary after undercover TV investigation accuses company of using mainland supplier that relabelled expired meat

India: Legal dispute with former partner hindering expansion amid surging demand for its chicken and vegetarian meals

Sources: Fortune, Time, Financial Times, wire agencies

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