TL;DR
McDonald's posted a net income of $1.9 billion in the fourth quarter, down one percent from a year earlier. The company's all-day breakfast strategy, which initially boosted earnings, is no longer delivering sustainable growth.
McDonald’s recently posted a net income of $1.9 billion in the fourth quarter, which is down one percent from a year earlier.
Over the past couple years, McDonald’s took fast-food rivals by surprise by expanding availability of its breakfast items to all day, which paid off with an initial earnings boost that extended into several quarters.
But now, it’s clear that the one-time surge in revenue is just that: a one-time thing. Now, CEO Steve Easterbrook is on the hunt for a new avenue for growth.
"These changes were supposed to drive a steady and sustainable uplift in spending rather than a one-off spike in sales, but it is increasingly clear that this strategy is not delivering through," Easterbrook said.
In this story
This story was originally published in 1851 Franchise on January 26, 2017. Burnaze summarizes and links to the original reporting.
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