McDonald’s Fighting To Be ‘Relevant’ To Customers

English: McDonalds’ sign in Harlem. (Photo credit: Wikipedia)

NEW YORK (AP) – McDonald’s is losing customers, as the world’s biggest hamburger chain struggles to attract diners with its higher-priced sandwiches and new offerings like Mighty Wings.

“We’ve lost some of our customer relevance,” CEO Don Thompson conceded Thursday on a call with analysts.

The Oak Brook, Ill.-based company reported disappointing sales for its fourth quarter, as fewer customers visited its established restaurants. Guest counts at those locations fell nearly 2 percent globally and 1.6 percent in the U.S. in 2013, according to a regulatory filing. And McDonald’s expects some challenges to persist this year.

To win back traffic, Thompson said the chain will focus on speedier service, better value offerings and raising “awareness around McDonald’s as a kitchen and a restaurant” that prepares high-quality food. It’s expanding prep tables and plans to beef up staff during peak hours for better execution. It is also bringing in a new U.S. marketing chief, Deborah Wahl, formerly with homebuilder PulteGroup and automakers Chrysler and Ford.

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Two Fast Food Conglomerates Looking To Sell Off Divisions

Image via Wikipedia

Two major US fast food conglomerates are looking for ways to maximize profits.  Selling off several chains that do not fit into their long-range plans are being considered.

Yum Brands is looking for a buyer for their A&W and Long John Silver’s restaurant chains.  Yum Brands is concentrating on overseas development and neither Long John Silver’s or A&W have an international presence.  That would leave Yum Brands with KFC, Taco Bell and Pizza Hut, which all have international locations.  A&W and Long John Silver’s have a combined total of 1, 630 locations nationwide.

Wendy’s is looking to sell Arby’s so they can concentrate on Wendy’s development.  Wendy’s/Arby’s combined have over 10,000 restaurants.  Wendy’s is the larger chain with over 6,500 restaurants.  Arby’s is struggling because they tend to be more expensive than other fast food chains and offer less of a dollar menu.

Wendy’s/Arby’s is also the target for a potential takeover bid after receiving an inquiry to buy the chain in June of last year.