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

  • Philips loses $467 million patent suit to US competitor
     AMSTERDAM – Royal Philips NV says it will book a $467 million charge in the third quarter after losing a patent lawsuit to smaller U.S. competitor Masimo Corp.
  • Barra shares plan to renew GM
    MILFORD, Mich. – General Motors CEO Mary Barra told investors Wednesday that GM plans a raft of new models and a big push to sell more cars in China to drive profits in coming years, as the biggest U.S.
  • General Mills to cut workforce
    General Mills plans to cut about 700 to 800 jobs, the second time it has trimmed its workforce in a month as the food company adjusts to a shift by U.S.
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