One of McDonald’s competitors, Burger King Holdings, Inc. (NYSE:BKC), has recently introduced new delivery services from its restaurants. McDonald’s could also cash in on a home delivery service. While Burger King Holdings, Inc. (NYSE:BKC)’s offering hasn’t been around long enough to see whether it’ll make money, the same idea sure did work out for pizza restaurants.
McDonald’s has been successful in introducing coffee and smoothies under the McCafe brand. It needs to keep introducing new menu items for potentially untapped markets.
Health-conscious restaurants have become increasingly popular — but McDonald’s current menu doesn’t appeal to healthy eaters. Unless it can come up with more nutritious alternatives, we may very well see healthy fast-food chains eat into McDonald’s profit.
The fast-food market is already overcrowded in developed countries. For a company as big as McDonald’s, achieving double-digit growth will be very difficult in this oversaturated market.
What does all this mean?
McDonald’s strengths show how ingrained the company is, not only into the fast food market, but also into American culture. With the third-most retail stores of any company, it is hard to imagine that the company could not keep its large share of the fast-food market.
Its most obvious weakness, unhealthy menus, is also one of its largest opportunities. If management can effectively change McDonald’s fat- and calorie-laden culture, it could still have plenty of room to grow. And even if it can’t shed that stigma, McDonald’s has still been and will be around for years to come, and should be a safe, consistent moneymaker for investors.
Howard Cranford has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide (NYSE:BKW) and McDonald’s. The Motley Fool owns shares of McDonald’s. Howard is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article A SWOT Analysis of McDonald’s originally appeared on Fool.com is written by Howard Cranford.
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