McDonald’s Corporation (MCD) Can Rise Again, Says Sarah Lockyer

McDonald’s Corporation (NYSE:MCD) may be currently struggling but Sarah Lockyer believes that the fast food giant can rise from stumbling.

In an interview with CNBC, the Nation’s Restaurant News editor-in-chief reminded people that McDonald’s Corporation (NYSE:MCD) was also in a rut back in 2001 and 2002.

“I think they can [make real change]. We’ve seen it before with McDonald’s. Let’s not forget that back in 2001 and 2002 they were really struggling. And [then] they put out under their former CEO Jim Skinner what they called ‘The Plan to Win’. And then McDonald’s could do no wrong from 2008 through 2012. They can do it again,” she said.

McDonald’s Corporation (NYSE:MCD) has been struggling with stiffer competition from younger brands which are seen as offering healthier options. However, it was also pointed out that there are other players in the market who are not trying to make their menus healthy but are doing well.

Concerns about the fast food giant’s menu becoming too big have been raised more so during the most recent quarters. In its latest quarterly performance report, the company reported earnings at $1.21 billion, or $1.24 per share and a 7% year over year decline, on a top line of $6.7 billion. Adjusted earnings per share was $1.13, down 19% year over year.

The company’s CEO, Don Thompson, has stepped down, which helped the firm’s stock rally after a miserable down year.

Part of McDonald’s Corporation (NYSE:MCD)’s problem is a brand and reputation problem, Lockyer said. A “killer switch” the company also has to make is to rollout better technology, she said, like an easy-to-use application that gets the company’s products to more people more efficiently.

Though healthier eating is taking off, Lockyer acknowledged that there is a market for affordable food that people can get fast and this is where McDonald’s should focus.

Frank Brosens’s Taconic Capital owned 525,000 McDonald’s Corporation (NYSE:MCD) shares by the end of September.