1.
After updating McDonald’s corporation summary of financial data from 2003 to 2011, I found that sales were on a rise. Looking closer into McDonalds total system wide sales, I noticed that sales have been increasing since 1997. When looking even closer into the company’s total system wide sales, I found that from the year 1997 to 2010, sales over doubled. When looking at the percent change between years, I noticed that the percent change was much higher in some cases, but sales were always on the up. For example, in the year 2007 total system wide sales were up 11.9% from 2006, but in 2006 sales were only up 7.3% when compared to 2005. Overall sales wise, McDonalds has done an excellent job, in continuing and meeting new sales growth each year.
2.
One of the key macro environmental trends is the recognition of the importance of heavy users of fast food restaurants. Heavy users make up 20 percent of customers but account for 60 percent of all visits. Another major change in the fast food industry is the increase in the fast-casual segment. Restaurants in the fast- casual segment include, Boston Market, Panera Bread Company, and Atlanta Bread Company. The fast casual sector is growing at a rate of 15-20% a year, because customers are willing to spend a couple dollars more for a better dining experience. Americans are beginning to eat out less compared to previous years and eating habits are changing. Part of the reason is the recession, but that should affect more up scale restaurants, not the fast food industry. Many younger consumers including the baby boomers are now starting to think about their health.
3.
Strategies that the food- food companies are making to address these trends are the, “New Tastes Menu” at McDonalds. McDonald’s advertising message is focusing primarily on tasty and nutritious food, friendly folks, and fun. McDonalds is trying