As global economic bellwethers go, McDonald's sales results probably rank right up there with oil prices and consumer-confidence measures. So its shareholders, analysts and executives aren't exactly lovin' it when the company reports lackluster results, as it did for the third quarter.

The fast-food leader reported weaker-than-expected earnings for the period as it battled a weak global economy and accommodated more budget-minded consumers from Europe to China. Both sales and profits fell during the quarter, a rarity for McDonald's.

Of course, McDonald's results aren't directly synonymous with the status of the world's appetite for quick fare. The stronger dollar hurt international sales too. Also, competitors in many markets have been upping their game lately, including both Burger King and Wendy's in the United States, and the new strains from rivals also are reflected in McDonald's results.Continue reading...

The latest in the McDonald's Canada transparency campaign, which answers customer queries with videos posted on its YouTube channel, reveals the journey of the McDonald's French fry. The fast food giant's latest earnings report indicates that brand needs to regain global momentum.

McDonald's, facing aggressive competition by quick-serve competitors including Burger King and Wendy's, needs more to crow about. It's been a tough year for the burger giant and a tough year for many of its customers. So what's the answer? Hint: It has wings, a beak, and a penchant for hot sauce.

Its new U.S. promotion — for Spicy McChicken Bites — is part of a global trend for the hamburger chain. Chicken may be flying to the rescue of a chain that withstood the headwinds of the Great Recession in pretty good shape but whose leadership senses more storm clouds building in the global economy. For McDonald's US CEO Don Thompson, offering more menu items based on chicken, compared with beef, poses "a tremendous opportunity," he said at a recent conference for analysts.

"Some great examples include our large wrap in Europe and snack items like Chicken McBites," which McDonald's introduced in the U.S. on a "limited-time basis" last year and which proved very popular, Thompson said. "Our customers have given us permission to stretch our brand, so we are entering new categories with new products," he said at the conference, according to Bloomberg.Continue reading...

The 2012 American Customer Satisfaction Index (ACSI) is out and it demonstrates the kind of consistency that a fast food behemoth like McDonald's can't be too happy about. 

The ACSI's new ranking puts the burger-meister dead last in the "Limited-Service Restaurants" category, with a satisfaction rating of 73 percent. That puts McDonald's just below rival Burger King (75 percent), but considerably below Wendy's (78 percent). Pizza delivery company Papa John's was rated #1 in the limited service category with a satisfaction rating of 83 percent, an increase of 5.1 percent from the previous year. Interestingly, the company in this category with the largest drop in customer satisfaction from last year was Starbucks. Often touted for its customer service, the coffee house fell from 80 percent in 2011 to 76 percent in 2012. 

Unfortunately, the lowly ranking should come as no big surprise for McDonald's management; the company has ranked last in the ACSI since 1995. In fact, its current rating of 73 percent is a percent higher than last year, and 73 percent is the highest rating ever achieved by McDonald's on the ACSI.Continue reading...

McDonald's is a bellwether of the global economy. It sells a value proposition to mainstream consumers worldwide, and it's a huge force in virtually every market.

Right now, that might not be such a great thing, for McDonald's — or the global economy. Analysts and investors have been turning sour on McDonald's stock because of factors such as the company's dependence on a slumping Europe for 35 to 40 percent of its earnings, a same-store sales decline for May in McDonald's Asia Pacific-Middle-East-Africa region including China and Japan, and of course indications of a faltering economic recovery in the United States.

There's also the matter of greater competition for McDonald's. After years of stumbling to mount much of a challenge to McDonald's, both Burger King and Wendy's have shown signs of renewed growth lately.Continue reading...

The King is dead. Scratch that: he's back. Long live the King! Regardless of whether Burger King re-gains a long-term lead over Wendy's as the No. 2 U.S. burger chain — both of them trail McDonald's by a mile — the short-term renaissance of the brand has made things interesting in a QSR business that has lacked excitement lately.

Burger King correctly called that involving celebrities in its marketing would create buzz, visibility and interest. So in new ads running over the last few weeks, BK fans and non-fans alike have been intrigued to see familiar faces including Mary J. Blige and David Beckham, Sofia Vergara and Salma Hayek, even Aerosmith's Steven Tyler, shilling for the King.

The fast food chain says it will discontinue the celebrity-studded campaign promoting its new menu this summer. But in the meantime, it has helped create enough interest that Burger King's same-store sales have posted solid gains, while Wendy's have dropped off again, on a relative basis. Burger King once again, at least for a while, has usurped the "Avis" position that it gave up to Wendy's last year.Continue reading...

You may get to see just how fast a fast-food chain can be.

Burger King is testing out if providing delivery service will help increase sales, according to Bloomberg News. The pilot project is currently available in a handful of the chain’s locations in Maryland and Virginia, and will be expanded to 16 locations by Jan. 23.  

The service is only available from 11 a.m. to 10 p.m. and deliveries add $2 to orders which must be more than $8 or $10, depending on the location, according to Burger King’s BK Delivers website. However, customers can’t order fountain drinks, milkshakes, coffee, and breakfast foods.Continue reading...