Friday, April 20, 2007

McDonald's a case study in adapting and succeeding

McDonald's Corp. said Friday its first-quarter earnings climbed 22 percent, boosted by surging sales in Europe and strong demand for its new U.S. menu items.(AP)

This is after all the hullabaloo from the movie about the guy who ate nothing but McDonalds' food for a month, and how McDonald's was supposedly responsible for an obesity epidemic.

McD's management has navigated its way through these troubles masterfully. McDonald's said it has recorded 48 straight months of higher sales from its established restaurants, its longest such streak since 1980.(AP)

Their addition of new products like snack wraps, more salads and premium coffee, and remodeling of restaurants to a more upscale feel are part of the company's resurgence. I have been very impressed with the decor in their remodeled stores; and I have seen analysis that indicates that McDonalds' coffee offerings are impacting Starbucks' results.

Europeans clearly like McDonalds' food as "
McDonald's quarterly results were boosted by a particularly strong March, with same-store sales rising 8.2 percent worldwide and 11.2 percent in Europe, boosted by a discount-price or value menu in the United Kingdom and successful promotions in Germany and France"(AP).

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