You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Wright timepieces capture a piece of flight history
    OAKWOOD, Ohio – Wright Brothers USA LLC, the Dayton company controlling the new Wright family brand, has unveiled luxury watches incorporating the Wright trademark, as well as a bit of wing cloth from the 1903 Wright Flyer.
  • Health care's big deal
    In a big year for deal-making, the health care industry is a standout.Large drugmakers are buying and selling businesses to control costs and deploy surplus cash.
  • Target facing crucial holiday test in Canada
    MINNEAPOLIS – Target Corp. botched its first impression in Canada so badly that some shoppers inverted its motto to “Expect less, pay more.
Advertisement
Associated Press
McDonald’s saw a key sales figure drop in the U.S. again in February, as the world’s biggest hamburger chain struggles to beat competition and adapt to changing eating habits.

McDonald’s struggles worsened by weather

– McDonald’s is fighting to hold onto customers in the U.S. – and all that snow didn’t help.

The world’s biggest hamburger chain said Monday that sales fell 1.4 percent at established U.S. locations. It blamed the harsh winter weather but conceded that “challenging industry dynamics” also played a role.

After years of outperforming its rivals, McDonald’s has been struggling to boost sales as people flock to places like Chipotle and Five Guys Burgers and Fries. Those chains have popped up quickly across the country by positioning themselves as a step up from traditional fast food in terms of quality, for a little extra money. They also offer greater customization, meaning diners can dictate exactly what toppings they want.

Executives at McDonald’s Corp., in Oak Brook, Ill., acknowledge Americans’ changing demands when it comes to fast food.

“A long time ago, mass appeal had to be mass appeal,” Jeff Stratton, the president of McDonald’s USA, said in an interview with The Associated Press last month.

“That’s not necessarily the case anymore today.”

So the company’s restaurants are adapting to a world where McDonald’s traditional strength – consistency – isn’t always enough. For example, McDonald’s is rolling out new prep tables that can hold more toppings and sauces, a sign that it plans to offer greater variety.

In Southern California, the company is even testing a “build-your-own-burger” concept that lets people use tablets to tap out the bread, cheese and other toppings they want on their burgers.

Executives say results are promising so far, but rolling out the offering across its more than 14,000 U.S. locations would require considerable changes to its kitchens.

In the meantime, McDonald’s has made other changes to its menu, including the option to get egg whites in breakfast sandwiches, and the addition of chicken McWraps, which are intended to appeal to people who want fresher, healthier food.

Globally, McDonald’s said sales declined 0.3 percent at locations open at least 13 months in February. It warned that its muted performance so far this year could hurt first-quarter profit margins.

Advertisement