It may have been a happy new year for companies globally, but the start of this year has not been great for McDonald’s (MCD), reports suggest. In a move that left industrialists shocked, the company offered “free coffee” along with its breakfast menu from March 31 to April 13. The freebie, typically a last resort, which comes after disappointing sales figures, has put investors on edge.
McDonald’s Current Position
One of the world’s largest food retail chains, McDonald’s serves over 70 million customers worldwide. But recently that number has been on the decline. With competition becoming tougher every moment, the fast food giant showed disappointing fourth quarterly earnings.
Global shares declined by 0.1%, a stark departure from the 0.5% gain predicted. Although the company blames the unusually cold winter for declining sales, reports suggest that frost bite may not have been all that’s keeping the food giant on thin ice.
— Guru Focus