Reply to Dennis Wong: McDonald’s Keeping up with Recent Trend — Healthy Living

Though I agree that McDonald’s should be careful with their positioning change, I would like to offer a different perspective. McDonald’s does target people without much time or money; however, this does not mean this target market is not concerned about their health when deciding where to eat. This market might be more than willing to pay a few extra dollars for a healthier option that takes roughly the same amount of time. If there was always a stigma that McDonald’s makes you unhealthy, consumers of all classes would be less inclined to eat there.

Although the prices of meals at McDonald’s have increased over the past ten years, it would be unfair to blame price increases entirely on the “health movement”. Other fast food chains have also been increasing their prices as the cost of food in general has increased dramatically. This makes McDonald’s costs higher so they need to raise prices to accommodate this.

If we look at McDonald’s financials over the past 10 years, we can see that their positioning change has actually been effective. In 2002, the company made a profit of $2.28 billion. Last year, this number was $5.59 billion so there is some merit in their new positioning strategy.

Sources:
http://www.gurufocus.com/financials/MCD
http://www.nbclosangeles.com/news/local/Restaurants-Hike-Prices-Food-266313461.html

 

Leave a Reply

Your email address will not be published. Required fields are marked *