McDonald’s is struggling to meet annual sales expectations. Their sales have dropped 15% to $4.7bn, making 2014 one of the worst years in the company’s history. Global sales declined by 7% to $6.5bn compared to $7.1bn in 2013, below analysts’ expectations of $6.7bn.
McDonald’s president and chief executive Don Thompson says that sale decline was due to “unforeseen events” and “weak operating performance”. Thompson has since stepped down as CEO of the company amid this earnings meltdown.
Weak operating performance could be attributed to lack of motivation by McDonald’s underpaid workers. While the president of McDonald’s says the company is losing customers due to unforeseen events and weak operating performance, the more logical explanation can be attributed to McDonald’s “junk food” image.
McDonald’s has made efforts to diffuse its junk food image by adding “healthy food” options such as mandarin oranges, cucumber, and gnocchi. McDonald’s also tried to refresh its image with new commercial marketing which was rejected by the public and criticized on twitter. Apparently Americans aren’t “lovin’ it.”
“The campaign quickly backfired as many viewers took to Twitter to criticize the fast-food company for presenting itself as being part of the community while continuing to pay its workers poverty-level wages.”
Inevitably it seems to be too little too late for McDonald’s. The company is continuing to lose fast food customers to up and coming alternatives and healthier lifestyles. There’s a growing awareness that processed foods with unnatural growing and breeding methods are hazardous to human health and the environment.