McDonalds Profits Fall as Sales Growth Stalls. The food chain's profits dropped signaling a continuing dip in the company's profitability. The fast food chain's profits have dropped steadily over the year in what analysts are saying will be the biggest drop in sales by McDonalds since 2003.
The fast food maker's net income has decreased by 30%. The decline has been attributed to a growing preference of emerging fast food alternatives, McDonalds increasingly complicated menu and poor staffing that ensures clients have to wait to be served.
Analysts and critics alike believe the fast food giant will be at pains to recover from the string of spiraling losses. The analysts predict that major changes will have to be done before the company can get back to profit making.
McDonalds is certainly not taking the dip lying down. The company has announced new plans aimed at getting back its youthful clientele as well as winning over the more health conscious segment of the market. From opening doors to the media to answering customers' questions on their beef to introducing new menus that are shorter and less complex, McDonalds execs are definitely working hard to recover their profits. The fast food maker will next year include more indigenous foods on their menu, corresponding to the respective locales of their branches.
"Customers want to personalize their meals with locally relevant ingredients. They also want to enjoy eating in a contemporary, inviting atmosphere," McDonalds chief executive Don Thompson said.
By the third quarter of next year, McDonalds also plans to roll out new technological advancements that will ensure its clients can pay for their food much easier. The technology will also see their customers able to customize their orders, a step that will see it battle the other fast food making options such as Five Guys and Chipotle Mexican Grill.
The drop in profits has seen many inventions by McDonalds creative team, but will they be enough to reverse the profit dropping trend, we'll have to wait and see.