16 Views· 10 November 2022
How McDonalds Evolved from Boomers to Zoomers
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In 2015, McDonald’s had just discontinued the fan favorite snack wraps, removed hot mustard from the sauce lineup, and axed the Bacon Habanero Ranch, Bacon & Cheese, Deluxe Quarter Pounder with Cheese. To freshen up the menu, they rolled out a series of new items that same year in a desperate effort to freshen their old-school cheap burger image, appeal to the modern health-conscious consumers, and better compete with the upscale burger joints.
With the rapid growth in popularity of fast-casual dining outlets like Chipotle, where you could get a quality, more wholesome meal for just a few dollars more, old fast food giants like McDonald’s quickly found themselves in a fight-or-flight, sink-or-swim mode. Customers voted with their wallets and in 2015, McDonald’s experienced the worst business performance in the company’s 80 year history.
Since 2015, the company has enjoyed a major turnaround. When you think of McDonald’s today, the company is really finding its form with hit celebrity partnerships from Travis Scott to BTS and Mariah Carey. There’s no more salads, gourmet sandwiches, or fancy sandwiches. And investors have noticed this turnaround with the stock up 110% over 5 years.
Many companies in multiple industries, not just McDonald’s and fast foods, find themselves in this identity crisis of being caught between their iconic legacy reputation and the newer millennial market. It’s thanks to food delivery, all-day breakfast, and Rick & Morty that McDonald’s has completely transformed as a company, returning to the throne as the #1 fast food giant in 6 years.
Chapters:
0:00 State of McDonalds in 2015
1:10 Corporate-Level Identity Crisis
2:24 Worst Performance in Company History
3:06 Business of Real Estate & Franchising
4:44 End of the Easterbrook Era
5:30 Easterbrook's Biggest Wins & Losses as CEO
6:19 Disruption Mindset from Tech/Silicon Valley
8:30 Rolling Out New Corporate Structure & Strategy
9:07 Real Estate, Not Burgers
9:55 McDonald's Revenue & Profit in 2021
10:59 Growth in Average Annual Franchise Sales
12:19 Earnings Impact of All-Day Breakfast
12:55 Embracing Delivery as the Fast Food King
14:45 Rick & Morty Szechuan Sauce Fiasco
15:23 Streamlining Menu to Bestsellers, Not Salads
16:00 Fundamental Shift in Marketing
17:00 Economics of BTS & Celebrity MCD meals
18:50 Going Global with Celebrity Meals
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