MCDONALD’S HITS ROADBLOCK
McDonald’s implemented an all-day breakfast menu in October in an effort to boost sales. It was a strategy that worked flawlessly for months. Americans were buying McMuffins by the dozens and everything was turning upwards for the gargantuan fast food chain. However, recent reports from McDonald’s show a huge slowdown in sales from the first quarter of the year. Whereas the company started the year off with a bang, showing a respectable 5.4% in sales, it now seems to be plateauing, with sales coming down to just 1.8%. Over the last year, McDonald’s comeback seemed to strike a pleasing chord with Wall Street, as the fast food stock shot up 30%, hitting record highs. However, this recent slowdown in sales has Wall Street feeling like they may have slight indigestion. Shares fell 4%. Neil Saunders, CEO of research firm Conlumino, believes that the roadblock McDonald’s is facing now is a result of both a “blip in growth” and the lack of creativity in McDonald’s turnaround plan.