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What are McDonald's threats and opportunities?

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Quick Answer

McDonald's major threats come from chains such as Wendy's, Five Guys and Chipotle that focus on quality and higher-end products. There is, however, significant opportunity for McDonald's if the company focuses on what it does well, such as breakfast, and also improve the taste of its products.

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Full Answer

McDonald's gradually has lost market share to other chains because those chains have focused on providing higher quality food. Wendy's in particular has offered items such as pretzel buns and special burgers that cater to consumer demand for more specialized products. McDonald's, on the other hand, rarely has offered new or innovative products, in part because of the already large amount of items available on its regular menu. Instead, the company relies on items such as the McRib, which McDonald's has offered sporadically for years. Another major threat is the perception that McDonald's is unhealthy, which causes a lot of parents to no longer take their children there.

However, there are opportunities for McDonald's to improve. One opportunity that currently is being tested is offering breakfast all day. McDonald's breakfast foods are considered to be among the best items on the menu, so offering those items all day could tap into a market that very few fast food restaurants currently serve, as of 2015. McDonald's also needs to take a close look at the quality of its core products, particularly its hamburgers. If the company can improve the taste and bring it on par with that of competitors such as Wendy's and Steak 'n Shake, it could help turn things around. Finally, McDonald's could help itself by slashing several items from the menu, particularly salads and other items that are not within its core competencies.

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