Burger King contender to McDonald’s Corporation (NYSE:MCD) throne
There was a time when McDonald’s Corporation (NYSE:MCD) was the monarch of the fast food world. Today, there are several other competitors who are giving the company a run for its fast-food. However, it must not be forgotten that MCD wields a great deal of muscle in this space and had been around for decades. It has seen the market rise and fall and been through a great number of ups and downs in its business.
The changing face of the fast-food market
Over the years, MCD has grappled tooth and nail with companies like Burger King and Wendy’s who giants in their own right. Other competitors such as Chipotle Mexican Grill, Yum! Brands, Panera Bread and Subway have chomped their way into MacDonald’s market share. There are a large number of people who look for variety in their food and do not want to eat only burgers and fries with every meal.
The company understands this and always added to its menu and offers food products that are different from its world-famous burgers. Innovation and variety in food is something that the company lays a lot of stress on.
High impact factors
Apart from the increasing competition, MCD has also had to deal with the weak economic scenario not just in the United States but across the world as well. It is a fact that the market scenario is a little brighter now and the job market is also a little steadier than it was last year but people are now more cautious and prudent with their money.
This, plus the fact that there is a lot of emphasis on eating healthy and eating right, has not helped the company’s business either. People are going vegetarian and organic and opting for health foods while McDonald is not able to tout itself as a company that stresses too much on health foods. All of these trends have also prevented the company from raising its prices. In effect, this hinders the top-line potential of the company.