Source: Joe Raedle / Getty
McDonald’s is going back to the drawing board as the fast food giant’s sales continue to slump. The world’s largest burger chain said Wednesday it’s working on a new plan to increase sales and profits after reporting disappointing first quarter profits. McDonald’s blamed “negative guest traffic” for causing same-store sales to fall more than two percent in the U.S.
Revenue for the Illinois-based corporation is also down eleven percent since last year which is slumping trend that apparently has not turned around since March 1. That’s when McDonald’s replaced its history-making former-CEO Don Thompson. Thompson was the first black CEO of the company who served in the top post for 31 months, after his humble beginnings–climbing from a neighborhood flanked by the projects of Chicago to a degree in electrical engineering from Purdue University to a 25-year history with McDonald’s serving as both president of McDonald’s USA and operating chief.
Plummeting sales are attributed to fierce competition in the fast food segment and the trend towards healthier eating. Other observers tie the trend to a backlash against the company’s employment and benefits practices for workers who work in the fast food restaurants. McDonald’s was one of the first major corporations to rail against the mandates of the Affordable Care Act and has been one of the major corporations in which its own workers are protesting for fair wages and affordable benefits.
The new CEO, Steve Easterbrook, will unveil the company’s turnaround plan early next month.
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