Here's What McDonald's Needs To Do To Get Back On Track
McDonald's Corporation (NYSE: MCD) released disappointing sales numbers for the month of November and shares took a big hit. Although most analysts feel that McDonald’s is on a perpetual decline, some are of the opinion that the company needs to set a few things right to get back on track. R.J. Hottovy, analyst at Morningstar, is one of them.
Hottovy was recently on CNBC to discuss McDonald’s sales number and the future outlook for the company.
“Right now, it just shows that the brand is failing to resonate with a lot of the consumers and much more aggressive actions are needed to get back and re-engage with those consumers,” Hottovy said.
“I think that there are so many other options right now that are more compelling in the restaurant space and it’s up to McDonald’s to introduce much more innovative platform, take a holistic look at its whole platform right now. Companies can be out marketing some of its customization efforts, the Choose-Your-Taste offering which its planning to roll out in 30 restaurants in the coming weeks and another 2,000 next year. I think, that’s a positive step, but it all comes down to execution and marketing of that.”
On strengthening of U.S. dollars that will impact McDonald’s global revenues, Hottovy said, “Yes certainly foreign currency given their exposure outside the U.S. and when you have a strengthening U.S. dollar, that’s going to weaken results here at home when they're translated into U.S. dollars. So, I think that is one issue that you have to look at it on the EPS line.”
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