McDonald's faces 'Millennial' challenge customers in their 20s and 30s are defecting to fast-casual
SEAFOODNEWS.COM [Wall St. Journal] by Julie Jargon - Aug 25, 2014
Behind McDonald's Corp.' s (MCD +0.17%) worst slump in a decade is a trend that may auger even tougher times ahead: The Golden Arches is losing its luster with younger consumers.
The world's largest restaurant company by revenue earlier this month reported its sharpest monthly decline in global same-store sales since early 2003, adjusted for calendar irregularities.
In the U. S., with more than 40% of McDonald's 35,000-plus global locations, sales at restaurants open at least 13 months have been flat or falling for most of the past year.
The hamburger giant on Friday announced it was replacing the head of its U. S. division for the second time in less than two years. The company tapped a former executive, Mike Andres, to take the helm of the domestic business—another sign that the company is trying to revive its fortunes at home.
McDonald's stock has traded in a relatively narrow range in the nearly 26 months since Chief Executive Don Thompson took the helm, while the share prices of many of its rivals have soared. McDonald's shares are down about 2% since the start of the year, closing at $94.45 Friday.
Demographics help shed light on McDonald's woes. Data compiled for The Wall Street Journal by restaurant consultancy Technomic ..
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