McDonald's Suffers Another Ingredient Scare: The Struggle To Revamp Its Image In 2015

McDonald's Corporation MCD had a rough year in 2014, but the company looked set to continue struggling through after complaints were made about its chicken nuggets in Japan. One nugget was found with a piece of vinyl inside over the New Year's first weekend, raising questions about the quality of the fast-food chain’s ingredients.

New Menu

In 2014, McDonald's was forced to fire Chinese food supplier Husi Food Co. after the company was believed to be selling expired meat. The problem contributed to McDonald’s poor sales performance last year, which set a new 14-year low for the company in November.

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This year is expected to be one of rebuilding for McDonald's, as the company’s management has announced plans to trim the menu and offer more customization and better quality ingredients. The decision closely follows the business model of successful competitors like Chipotle Mexican Grill, Inc. CMG.

New Image

McDonald's is also re-working its brand image as negative publicity surrounding the “golden-arches” has done major damage to the public opinion of the chain. Campaigns against obesity in America often cite the company as an example of poor food choices and the 2004 documentary “Super Size Me” drew a lot of negative attention.

Moving forward, investors can expect to see the company roll out several new tactics in order to combat falling sales and compete with rival Burger King, which recently acquired doughnut chain Tim Hortons to become Restaurant Brands International Inc. QSR.

In Australia, McDonald's has already begun testing a new cafe-style restaurant called “The Corner,” which is nearly unrecognizable as the McDonald’s brand. In Washington D.C. and the surrounding area, the fast-food chain is attempting to regain breakfast customers by offering free coffee every Monday throughout 2015, a tactic it hopes will increase morning traffic.