McDonald’s Corporation (MCD): Slow and Steady Wins the Race

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McDonald’s Corporation (NYSE:MCD) has seen flat sales in the last couple of months due to declining demand in the global fast food industry. Current economic conditions have helped the largest fast food chain’s sales by providing cheap, quality food in rough times.

With recent falling global comparable-store sales of 0.6% in the last month, McDonald’s Corporation (NYSE:MCD) has missed the mark when it comes to same-store revenue. However, this global giant is “Lovin It” across the globe as it grabs more and more market share from different segments.

Emotional engagement

With a strong presence in social media, McDonald’s Corporation (NYSE:MCD) has done a great job of creating a brand image of fresh, healthy food in a traditionally unhealthy market space. Steve Easterbrook recently became the new global chief brand officer to propel the brand forward in the coming months.

With competitors like Panera Bread Co (NASDAQ:PNRA) and Chipotle Mexican Grill, Inc. (NYSE:CMG) tapping into conscious consumer behavior, McDonald’s Corporation (NYSE:MCD) not only has to keep value customers buying in rough times but also launch premium items for the socially conscious.

The Wendy’s Company (NASDAQ:WEN)

has developed a new branding campaign around healthy eating and consumer engagement. With new revitalized stores, including new branding and media campaigns driving consumers inside the building, The Wendy’s Company (NASDAQ:WEN) is growing by leaps and burgers. Its new mantra is to connect to consumers by offering them new menu items at affordable prices for all.

McDonald's CorporationThe new branding campaign seems to be paying off for Wendy’s. With a bold new Wendy’s logo, stylish uniforms, updated menu boards and innovative products, the company saw a sales increase of of 1.0% in the first quarter within company- owned stores. The Wendy’s Company (NASDAQ:WEN) plans to revitalize 50% of restaurants by 2015, with 86 locations already transformed into the new restaurant model.

Burger King Worldwide Inc (NYSE:BKW)

recently came out with a better-than- expected earnings report, even in an unstable economy. The company attributes its growing
value to its four-pillar program, which has been the framework for its continued success. Menu, marketing, image, and operations are driving the success of Burger King Worldwide Inc (NYSE:BKW), as well as international expansion into key global markets.

Even though Burger King reported negative comparable-sales growth of 1.4% globally, the company launched a share-repurchase program and an increased dividend of 20% for the quarter. As well, it launched new pricing options globally, pairing value items with limited-time offers to boost menu-item revenue.

Also, Burger King Worldwide Inc (NYSE:BKW) is relying on the power of its franchisees to expand globally. This model allows growth for Burger King, while providing a franchise and property revenue stream during the global expansion process.

Global footprint

McDonald’s Corporation (NYSE:MCD) invested early into the international space, and it paid off big time. With store locations in 119 countries, global revenue accounts for a large portion of total sales. McDonald’s is leading the way with 34,000 global stores, while Burger King Worldwide Inc (NYSE:BKW) operates 12,600 and The Wendy’s Company (NASDAQ:WEN) 6,500.

With recent news of improved global branding, McDonald’s Corporation (NYSE:MCD) is looking to increase customer engagement by providing QR codes on drinks and bags. This strategy not only provides nutrition information to customers, but also taps into the mobile market as well. With digital gaming apps with geo-located devices, McDonald’s can gather data about consumers off of this branding strategy.

A cup of java

Although Starbucks Corporation (NASDAQ:SBUX) is the well known name when coffee consumption is mentioned, McDonald’s Corporation (NYSE:MCD) recently expanded its menu to appeal to the java elite. With more than 1,600 McCafés with sectioned-off areas especially for sipping your cup of joe, McDonald’s hopes to target coffee drinkers with high-class store space.

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