Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition by Pearson

Case 2–1: McDonald’s: Comeback in the U.S. Burger Market?*

McDonald’s, one of the world’s most iconic brands and companies, faced a crossroad in its comeback path. When Steve Easterbrook was appointed CEO in 2015, the company had lost an astonishing 500,000 U.S. customers in the previous four years. In 2015, for the first time, McDonald’s closed more restaurants than it opened. Same-store domestic sales fell 1.3 percent in 2016, and the number of customers visiting McDonald’s fell 2.1 percent that year, the fourth straight year for a decline in customers. Reflecting this trend, many younger people had never dined at McDonald’s. As indicated by its recent declines in revenue and profit (see Tables 1 and 2), McDonald’s faced a variety of challenges. ...