tional performance was offset by domestic sales.Opportunities The two greatest opportunities for McDonald’s are their expansion into other brands and international markets. First the expansion into markets like Mexican entries and pizza delivery allow them access to the fastest growing restaurant segments. This will allow them to have a better product selection and provide future domestic growth. Internationally, McDonald’s has the opportunity of penetrating further markets before competition. Their plan is to add about five restaurants each day as new restaurants are posting strong initial results and returns. Another opportunity is with concept testing in domestic McDonald’s restaurants. The most recent are new diner and deli concepts that are to be tested in western United States. They will open three diner-style restaurants sometime after Jan. 1, 2001. The prototype will be built at existing McDonald’s but distinct from its existing fast-food offerings. This new concept will allow customers to order their food and then have it brought to their table by a server. The other concept is a deli-style menu, which will be added to the traditional McDonald’s menu. This concept will add deli sandwiches and soups to familiar Quarter Pounders, Big Macs, and other sandwiches.Threats The most obvious threats for McDonald’s are with their competitors. Now that they have expanded into other brands this list has grown greatly. Direct competitors with McDonald’s restaurants include Burger King, Dairy Queen, Hardee’s, Jack in the Box, and Wendy’s. Each of these competitors has expanded menu offerings that compete directly with McDonalds. Burger King is the number two hamburger restaurant and is developing a new strategy in hopes of taking the number one position from McDonald’sRecommendations Our first recommendation is to continue expansion into international ...
