What this all boils down to is that McDonald’s, Wal-Mart and other fast food and retail outlets that receive a large portion of their business from lower-income families might see sluggish sales for a while yet. This will likely result in more promotions and advertising in hopes of attracting potential customers who are on the fence as to whether they should splurge a bit after cutting back on their monthly budgets. It will also likely result in further corporate cost reductions such as the rumored elimination of Chicken Selects chicken strips and Angus beef burgers at McDonald’s Corporation (NYSE:MCD) to eliminate waste and keep profits coming in.
With careful management and sufficient cost-cutting, it’s entirely possible that the restaurants and retailers most affected by economic slumps can still remain profitable and come out of their current slumps better than ever before. Until then, at least we’ve got the Egg White Delight McMuffin to look forward to.
The article The McBites Just Aren’t Biting originally appeared on Fool.com and is written by John Casteele.
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