McDonald's has been in the dumps lately. Over the past year, the stock has seen declines as the company's sales not only plateaued, but have declined dramatically. Throughout the year, the company has made several attempts to bring sales back up from the nosedive and nothing seems to have worked yet. However, there is a new plan for the company to drive sales. Today, we'll talk about the reason McDonald's is having such a hard time increasing sales, what they've done in the past to stop the problem, what they're planning on doing now, and what I think we can expect to see from the stock moving forward. So, let's get right to it…
Why McDonald's Sales Are Declining
In the past, the average consumer in the United States wasn't too concerned about what was in the food they were eating. If it provided sustenance and tasted good, consumers were all over it; and that's exactly what McDonald's did for them. However, as chemicals in food are hitting the mainstream, consumers in the United States are becoming more aware. They still want food that tastes good, but they want it to be healthy. That's where the problem comes in for McDonald's. Unfortunately for the company, the McDonald's brand has been the subject of quite a bit of criticism; and when consumers in the United States hear the name, one of the first things that comes to mind these days is how unhealthy the food they offer is.
What The Company Has Done To Try And Fix The Issue
The bottom line is that consumers want healthier food; and that's no secret to McDonald's. So, they have been working incredibly hard to offer healthier options. For example, here are a few changes we've seen from the company recently…
Artisan Sandwiches – McDonald's has started to offer artisan sandwiches; designed to not only taste better, but to promote health. These sandwiches use higher quality materials, making consumers feel better about purchasing them.
Yogurt And Apple Wedges – They have also started offering yogurt and apple wedges as substitutes to french fries on kids meals. The hope here is that parents will see McDonald's as a more healthy option for their children.
Removing Soda From The Happy Meal Menu – The company has also removed soda from the happy meal menu; replacing it with juice and milk. This also shows that the company is focusing on a healthier future for the children that eat at their restaurants.
It's important to mention however, that these changes weren't just made yesterday. As a matter of fact, they've been in effect for quite some time, and the problem is still persistent. Leading to the next big push from the company.
McDonald's Has A New Plan
The kids movie Minions is set to be released soon; and McDonald's is hoping that it will we the key to get them back into the hearts of children. When the movie comes out children will want Minions toys; and McDonald's will be offering them with kids meals. The idea is to get the kids to drag the parents along; and with the new menu in place, ultimately change the parents' opinions that McDonald's is unhealthy.
What We Can Expect Moving Forward
Unfortunately, I'm not sure that the Minions idea is going to work. The reality is that McDonald's may have a healthier menu, but in the minds of Americans, the brand goes hand in hand with unhealthy eating behaviors. With that said, no matter how much children want the toys, they're not likely to be able to talk health conscious parents into taking them to what is considered by many to be the most unhealthy restaurant in the United States. With that said, I'm expecting that we'll continue to see declines moving forward; as this move, along with past moves, simply isn't going to work!
How Binary Options Traders Can Benefit From The Trends
McDonald's is in a losing battle. However, that doesn't mean that you can't gain from the stock. With that said, the key here is going to be put options. As McDonald's reaches a point of resistance in the market, purchasing put options will all-but guarantee profits because McDonald's stock is destined for more declines.
What Do You Think?
Where do you think McDonald's is headed and why? Let us know in the comments below!