March 26, 2012
Trends & Innovation
If you’re a fan of McDonald’s, you know our menu is more than just (delicious) burgers and (outstanding) fries. From Snack Wraps to McCafé to Premium Salads, we proudly offer variety, quality and fun-filled value in all of our restaurants. When you think about your local McDonald's (NYSE:MCD) restaurant, you probably don't think "innovation". We've all become accustomed to the many novelties that McDonald's has introduced over the years. You might know that McDonald's was the first major international fast food restaurant, and that it had the first drive-through window. What you may not realize is that McDonald's continues to drive innovation in fast food. Some of these innovations are well advertised, but others are designed so that customers will never notice. Innovation in the fast food industry may not be rocket science, but it does take a special type of practical genius. Through its innovations, McDonald's has managed to squeeze ever higher sales and greater profits from the American fast food industry - an industry which many were calling oversaturated as far back as the 1980s. The next time you stop in for a hamburger, or a latte, think about how different fast food would be without the continuing innovations introduced by McDonald's.
McDonald's has continued to advertise heavily however, and has made considerable progress in attracting those looking less for an experience and more for an economical coffee fix. The expanding coffee sales figures are lauded by shareholders, as these products bring exceptionally high margins during the slow late evening sales period.
Read more: http://www.investopedia.com/financial-edge/0410/McDonalds-A-Look-Back.aspx#ixzz1qFSCzu6H