McDonald’s CEO outlines changes as sales and reputation slide

After posting yet another disappointing quarter, McDonald’s CEO Don Thompson said Tuesday the company hasn’t been keeping up with the times and that changes are in store for its U.S. restaurants. Stock in the fast-food chain was down 0.6 per cent at $91 in afternoon trading after reporting a 30 per cent fall in third-quarter net income to $1.07 billion and traffic declines in every major region and the U.S., marking the fourth straight quarter of declines in its home market. Thompson said that starting in January McDonald’s will “simplify” its menu to make room for restaurants to offer options that are best-suited for their regions. To offer greater customization, he also said the company planned to expand its “Create Your Taste” offering that lets people pick the buns and toppings they want on burgers by tapping a touchscreen. Thompson said they’ll also roll out mobile services such as payments and ordering, and open a social media “dialogue” with customers.

McDonald’s is in the business of satisfying customers and that will never fall out of favor. The question is what do you do to do that?

Thompson asked Reuters in a telephone interview

McDonald’s has posted a string of disappointing results, due to uncontrollable factors and internal missteps, since Thompson took the helm in July 2012. McDonald’s Asia-Pacific, Middle East and Africa unit said same-restaurant sales tumbled 9.9 per cent, after this summer’s China supplier scandal pummeled sales around the region. Executives said same-restaurant sales in China fell 22.7 per cent during the latest quarter. Wall Street analysts, many of whom underscore McDonald’s deliberate business style, predict that the company will give Thompson at least a year to move the needle.

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