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McDonald’s Corporation (MCD): Did It Just Lose Its Innovative Touch?

A more expansive menu that allowed breakfast to be served all day could mean bigger profits for McDonald’s — but let’s face it: That’s really been Jack in the Box Inc. (NASDAQ:JACK)‘s territory since day one. While Jack in the Box Inc. (NASDAQ:JACK) has made no qualms about emulating McDonald’s interior redesigns and menu expansion in order to boost its own sales, it’s been the company’s promotion of its all-day breakfasts that make it one of the fastest growing fast-food restaurants in the United States.

Where’s the beef, Don?
Looking back at Don Thompson’s interview with CNBC, I didn’t really see a CEO who brought anything new to the table. All I saw was a CEO who alluded to the fact that there are weaknesses in McDonald’s stay-the-course strategy that its peers caught onto quicker than it did.

Now, don’t misconstrue what I’m saying as I’m in no way predicting the end of McDonald’s Corporation (NYSE:MCD) dominance as a large-scale restaurant chain. What I am saying is that its outperformance relative to its peers may be a thing of the past as it takes its turn in the emulator’s chair and watches as its peers innovate their way to big gains.

If shareholders want McDonald’s Golden Arches to shine once again, they’ll need CEO Don Thompson and his board to generate unique ideas that’ll set McDonald’s apart from the pack. At the moment, there’s not enough to differentiate McDonald’s from the pack, and that’s a scary scenario if you’re currently holding shares of McDonald’s in your portfolio.

The article Did McDonald’s Just Lose Its Innovative Touch? originally appeared on and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Chipotle Mexican Grill, eBay, McDonald’s, and Starbucks. It also recommends Burger King Worldwide.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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