Once the shining example of American fast food, marketing, and pop culture integration, the McDonald’s franchise is in serious trouble and the reverberations are shaking their stockholders to their cores.
McDonald’s used to be a sure thing. Investors who got in when the chain was first forming had been sitting on a goldmine for decades. They could count on their stocks maintaining a specific level and then growing in dramatic spurts whenever popularity increased via marketing and new products. McDonald’s stood invincible until just a few years ago when investigations into their food products emerged and the news was both scary and astonishing.
As the Baby Boom generation got older, they ended up needing hospitalization. One of the major culprits was fast food, and McDonald’s became the whipping boy of the fight against unsafe ingredients and practices. Everything from heart disease to Alzheimer’s disease was being attributed to the fast food products and industry and McDonald’s, being the leader in the industry took the brunt of the attacks.
Investors at first felt that the corporation would be able to sidestep any damaging regulations and damage, but they found out that was not to be the case as health conscious consumers, especially parents, realized that McDonald’s wasn’t being truthful nor proactive enough to feature healthy alternatives. Reduction in sodium and other ingredients altered the taste in their popular items and consumers soon started turning away. The way McDonald’s processed their foods have become a laughing stock as they neither taste good anymore nor are desirable. This diminished the revenue and put the company and investors in jeopardy.
All is not lost though. It may be that McDonald’s will find new blood in a place no one would expect: Iran.
With the sanctions lifted on Iran, the fertile ground for American companies looks a lot more greener but there are hurdles to overcome. For McDonald’s to gain a foothold there they’ll have to do some serious negotiations and modifying things. Iran won’t tolerate some of the marketing symbols or types of food and their preparation. Iran isn’t a primitive country by any means. The people there are nutrition conscious and no American restaurant can open in the country unless via a European connection or other via. If it can be done, it would mean a boost in expansion, revenue, and stockholder benefits.
This will be an interesting process to follow over the years. McDonald’s has to shore up their American and worldwide presence and forge into new territories. McDonald’s is a survivor. Yes they’re shutting down some stores in some locations but they’re still a favorite and part of the American landscape. It’s sort of like a tradition for people to go to McDonald’s as some of their items are time tested favorites that people cannot live without.
It seems McDonald’s has two battles ahead, repairing the damage done already and solving problems that are ahead. There’s no telling what they’ll come up with but it’s sure to be amusing and profitable if they listen to consumer’s wants and needs, market their items in an entertaining way, and adapt to new territories with caution yet excellent service.
Stranger things have happened.