Tomahawk, WI 09/12/2014 (Basicsmedia) – McDonald’s Corporation (NYSE:MCD) is in the process of trademarking the term ‘McBrunch’ as it seeks to up its game as competition heats up in the fast food business. CNBC’s contributor, Carol Roth, argues that the company is missing the point with its new product as it continues to shy away from addressing niggling consumers concerns.
“[…] It doesn’t seem to me like they are really listening to their customers. Customers for a decade have been saying make breakfast an all-day event, so unless the McBrunch is just breakfast rolled out with extended hours I don’t think that this is something that is going to move the nail for MacDonald’s,” said Mrs. Roth.
Roth took note of the fact that McDonald’s Corporation (NYSE:MCD) has so many problems to deal with and that the addition of McBrunch may not have any substantial impact on the short term. McDonald’s Corporation (NYSE:MCD) has had its own challenges this year especially in China, where Scrutiny from regulators has turned out to be the order of the day, and the stock has also not been performing as expected.
Hake Capital Management’s Mark Hake, on the other hand, maintains that the downside in the company performance especially in terms of sales has to be attributed to currency rates that are always fluctuating. Hake argued that McDonalds growth might have been’ hampered by the company always draining cash out of the company instead of focusing on expansion.
“They’ve got food traffic issues; they have less people who are going into the stores, and I think McDonald’s Corporation (NYSE:MCD)’s even though it has this amazing footprint. It’s getting lost it’s getting away from being a leader they are not a leader in technology,” said Mrs. Roth.
MacDonald’s continues to lag Chipotle Mexican Grill, Inc. (NYSE:CMG) and Starbucks Corporation (NASDAQ:SBUX) in terms of refurbished menus as well as technology. Its loyalty program that was’ hoped would give the company much data such as Starbucks has also been a flop according to Roth.