Kiersten Kiene
From profit losses to new campaigns; McDonalds is recovering from the last fiscal year.
It’s not everyday when a big name corporation is having financial problems. Companies may have controversies, like Urban Outfitters selling blood-like Kent State sweatshirts, Disneyland being linked to multiple measles case, and even the 2015 Oscar nominations infamously being all white. But deep down in the news, McDonalds is suffering.
Towards the end of the 2014 year, McDonalds stocks and profits fell. According to Buzzfeed, “Revenue fell 7% in the last three months of the year, partially thanks to foreign currencies weakening against the dollar...The profit numbers were even worse — earnings per share fell 19% and profit dropped to $1.01 billion from $1.4 billion a year ago. McDonald’s blamed “weak operating performance” in the U.S. and a “supplier issue” overseas.” The percents may seem small, but when operating with millions and even billions of dollars, the money adds up quickly.
Worldwide, McDonalds isn’t doing so hot, specifically, Japan’s sales have declined over 20%, Buzzfeed reported. Even the CEO, Don Thompson, has stepped down from his position, leaving in March. So what does this mean for the local McDonalds? In the midwest? In Iowa? Even here in Fort Dodge?
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| Chelsea Adams, general manager, Fort Dodge McDonalds |
Not to worry Fort Dodgers, McDonalds isn’t going anywhere. General manager, Chelsea Adams, of the Hwy 169 store says business is running as usual. ”In my store...I don’t see this happening. The previous years we’ve steadily maintained, I know that there are other restaurant opening [around town], but as far as our loyal customers, they keep coming back.” Adams said. “We haven't really lost a lot of sales, but with these new campaigns and everything going on and us being as genuine and as friendly as we can we won’t see anymore effects.”
Speaking of new campaigns, McDonalds has just recently implemented Pay With Lovin, an instant win game. “We’ll get a card, through corporate, each day that we open that will tell us what times to do it. Our biggest one that people like to do is dance and thats really fun. We’ll have our managers and crew members dance with them.” Adams explained. Each day through February 14, the cards will randomly select McDonalds customers. Adams continues, “I was actually thinking that people would reject the promotion, but really no one has. It’s really surprising and I am really happy for that. The winner will get a free value meal.
According to thepennyhoarder, “Each McDonald’s location will have 100 winners over the course of the promotion. Winners will be selected during three different segments of the day: 6 a.m. through 11 a.m., again between 11 a.m. and 3 p.m., and finally 3 p.m. through 6 p.m.”
It’s safe to say that McDonald's is trying to recover, and quickly. Time will if the new love campaign will really catch on. The only downside is that it is only being held for a two week period. Plus customers will have to walk into the store as opposed to using the drive thru. But as of now, Fort Dodge McDonalds are safe to stay.
This was an article written for Iowa Central's Collegian
Check out my blog for my opinion of the subject!
http://kierstenkiene.blogspot.com/2015/02/is-mcdonalds-going-down.html
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