McDonald's: Cantalupo's Challenge

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Case Details:

Case Code : BSTA069
Case Length : 19 Pages
Period : 2003
Organization : McDonald's
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : Restaurants

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Cantalupo's Revival Plan

Cantalupo announced various initiatives to improve the quality of McDonald's food and service. Cantalupo cut the number of new store openings worldwide from more than 1000 in 200213 to 360 in 2003. Under his plan, only seven major markets (including the US, China and France) would get more than 10 new restaurants. He also planned to close more than 700 under-performing stores. Under Greenberg, McDonald's had announced that the company would spend between $200 and $500 million on store remodeling...

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Future Outlook

In early 2003, McDonald's faced a number of pressing problems. Its same-store sales, which had been more or less stagnant throughout the 1990s, had been on the decline for the past one year. For January, February and March 2003, sales had declined by 2.4%, 4.4% and 1.2% respectively. Since the Chicken McNuggets in 1983, McDonald's had not introduced a hit product...

Exhibits

Exhibit: I: McDonald's: Customer Survey

Exhibit: II: How McDonald's is Perceived Today

Exhibit: III: McDonald's: Revenue Split-up

Exhibit: IV: McDonald's Restaurant Count

Exhibit: V: Mc Donald's: Three-Year Income Statement
Exhibit: VI: McDonald's: Eleven year Financial Summary
Exhibit: VII: McDonald's Five-year Stock Price Performance

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