McDonald’s To Offer Healthier Menu To Counter Falling Sales
Vittorio Hernandez | | Apr 23, 2015 05:35 AM EDT |
(Photo : REUTERS) McDonald's
Because of the perception that its burgers and French fries are the cause why many people are obese and battling health problems, McDonald's is giving in to pressure to change. It took declining revenues to convince the restaurant known for its golden arches to change its meal offerings.
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New McDonald's CEO Steve Easterbrook gave hint of the upcoming changes in its menu. He said McDonald's in the U.S. would soon use chicken raised with fewer antibiotics. The fast food would also have a new premium sirloin burger, sandwich toppings, breakfast available the whole day and salad bars.
"I think there is a hunger and an interest in our business to embrace change," Easterbrook said, quotes SFgate.
What convinced McDonald's to change, after years of being accused by health authorities of contributing to the national problem of obesity, was a 32.6 percent decline in net income that dipped to $811.5 million, while revenue also decreased by 11 percent to $5.96 billion.
By May 4, McDonald's would become a modern, progressive burger company, according to Easterbrook, reports Reuters.
He shared the plans with investors and analysts on Wednesday in his first quarterly conference call after Easterbrook became CEO on March 1. Following his disclosure, shares of McDonald's went up 5 percent in early trading, although by midday stocks were trading at $97.70 or 3 percent higher compared to the previous day shareprice.
The weak sales was felt not only at its U.S. operations but also in Asia, particularly in China and Japan as the fast food chain dealt with food safety and quality issues.
Besides its food, McDonald's also needs to address labor issues amid the global push for higher wages of $15 per hour and for workers to organize a union. The fast food has indicated willingness to adjust salaries and even increase more vacation time for employees of stores owned by McDonald's.
In contrast to the declining sales of McDonald's, other smaller competitors such as Chipotle Mexican Grill enjoyed a 10.4 percent in its sales. Taco Bell also reported a 6 percent boost in sales due to its offer of a breakfast menu.
TagsMcdonalds, obesity, healthy food
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