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Not lovin’ it: McDonald’s serves up earnings

McDonald’s, the world’s biggest fast-food chain, is likely to say today that its global “like-for-like” sales (ie, ignoring new outlets) fell in 2014, the first annual decline since 2002. Its biggest problem is its home market, America, where it has 14,200 of its 35,000 mostly franchised restaurants. Americans flocked to McDonald’s during the recession, but in the past couple of years they have gone elsewhere—to Burger King, its revitalised rival, or slightly more upmarket “fast casual” joints. Many seem confused by the menu, with almost 200 items, and put off by frozen “factory” food packed with preservatives. (Some are also appalled by the way the fast-food business treats its workers.) McDonald’s is trying to win customers back. It simplified its menu this month and is introducing fancier bespoke burgers in up to 2,000 restaurants this year. But it may take much more to restore diners’ appetites.

Jan 23rd 2015
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