New boss, old problems: February's dismal U.S. sales confirmed the continuing exodus of McDonald's customers to rivals, as a modern recipe for success eludes the burger giant after decades of global supremacy. The company's new CEO Steve Easterbrook was plunged straight into the fray after the 4 percent sales drop when he took the helm in early March. Industry insiders say the company's U.S. menu will soon sprout kale, a green vegetable close to wild cabbage. Kale is a new hit in cities like New York, and McDonald's wants a piece of the organic action too by adding it to salads and smoothies, so the story goes. "McDonald's is clearly trying to change customer perceptions about its quality," says analyst Mark Kalinowski of Janney Capital. Not that anyone expects that greens alone could swing sales. Turnover expectations were already low amid changing trends in the fast food industry. In January, McDonald's took a hefty 12 percent fall in sales in its Asia/Pacific, Middle East and Africa operations. Then February's 4 percent U.S. slump underscored the possibility of long-term decline.
And it is certainly under attack from all sides. Old rivals Burger King and Wendy's are vying harder in the low-price segment with a healthier image.
