McDonald's Readies For A Comeback
2016 could be a big year for McDonald's Corporation (NYSE: MCD), as the company appears to be successfully adapting to a push among consumers for healthier food and more natural ingredients.
The fast food chain suffered last year as more and more people backed away from the Golden Arches in favor of restaurants like Chipotle Mexican Grill, Inc. (NYSE: GMC), which were perceived to be healthier options. However, a few changes to the company's operations appear to be paying off.
Breakfast A Winner
McDonald's decided to make its popular breakfast menu available all-day last year, leading many to question whether or not that was a wise choice. Not only does it make the restaurant's operations more complicated, but serving cheaper breakfast items all day could persuade some customers to spend less money.
However, a study by NPD Group Inc. showed that nearly 30 percent of those who bought breakfast foods in the afternoon hadn't been to McDonald's before the all-day service began. That suggested that the company's efforts to draw in more customers with breakfast options was paying off.
A New Image
The fast food chain has also been re-working its image in order to evolve alongside shifting customer preferences. The company has introduced more modern packaging and added new items to its menu that fall in line with consumers' desire to eat healthier. Fresh ingredients have become more of a focus and the company is also allowing customers more personalization with their orders.
Is It Enough?
McDonald's has suffered some serious damage to its reputation over the past few years after the media painted the company in an unfavorable light among the public. While its latest changes represent an effort to evolve with the times, the company is still a fast-food chain at heart.
On Monday morning, McDonald's reported Q4 EPS of $1.31 vs. $1.23 estimates, with sales of $6.341 billion vs. $6.22 billion estimates.
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