Proposal McDonalds Research Prooject

Proposal for Research Project

Symptom(s) Observed: Usually one of the top earning restaurant chains, McDonald’s earnings and sales declined in the fourth quarter of 2014. As a result, McDonald’s has lost market share and underperformed its peers.

Problem/Opportunity:

By the end of 2014, McDonald’s revenue fell to $6.57 billion from $7.09 billion. In the fourth quarter of 2014, McDonald's stock closed down 1.5%, or $1.33, at $89.56. At the end of this period (2014), McDonald's earned $1.1 billion, or $1.13 per share compared to the amount of $1.4 billion, or $1.40 per share, in 2013.

Possible Causes:

Here are some possible causes that create the symptom and problem.

1. New trend to seek out fast casual options (e.g. Chipotle).

2. Mismanagement within the company.

3. Brand image of poor food quality.

4. McDonald’s is no longer an innovator in the segment.

5. The service at the restaurants is not up to par with the competition.

Probable Cause(s):

1. New trend to seek out fast casual options (e.g. Chipotle)

Decision Alternatives:

1. McDonald’s is no longer an innovator in the segment.

2. Brand image of poor food quality.

Research Questions/Hypotheses:

To find out if it is financially beneficial for McDonald’s to alter its menu and appearance in order to compete with fast casual alternatives.

1. What