In a program on CNBC, R.J. Hottovy, Morningstar analyst said that McDonald’s Corporation (NYSE:MCD) is failing in resonating its market strategy and sales with the demands of the customers. The company needs to take some aggressive steps in order to catch up otherwise the future is bleak for the fast food chain. He thinks that customer engagement is necessary. The company needs to make its customers feel that it values them. Answering a question about effects of gas prices and why McDonald’s Corporation (NYSE:MCD) is not lessening the prices like other companies have done as a result of gas tumble, Hottovy said that the company is not executing smartly. It needs to take a holistic look at its business from all angles and craft another strategy of execution. It is lacking in quality, product curve and taste.
McDonald’s Corporation (NYSE:MCD) has reported that it will lose around 7 to 9 cents a share because of the strengthening of US dollar as compared to every other currency around the world. Hottovy said that as McDonald’s Corporation (NYSE:MCD) has massive customer base and franchises outside the US, the strengthening of the US dollar would definitely hit the overall EPS line because of the conversion phenomena. But this is not the real problem right now for McDonald’s Corporation (NYSE:MCD). Hottovy said that France, Asia and China are giving some mixed results for the fast food business. UK was a success for McDonald’s Corporation (NYSE:MCD).
Hottovy said that there are a lot of questions about the turnaround for McDonald’s Corporation (NYSE:MCD). The stocks are valued fairly. The yields will go high but the company must take rigorous actions to revamp its customer strategy.
Suggested Articles:
Top Travel Destinations in South America
