McDonald's Maneuvers in Response to Loss

For the first time in 9 years, the international fast-food chain experienced its first earnings loss in the latest reporting quarter (Q3) this year.

Because of this 0.2% loss in total sales, corporate must consider re-adding their dollar menu in order to regain some economic footing. The idea of removing this menu and adding more expensive items forced many customers to shy away. Purchasing power is absolutely crucial during these times and McDonald's is now "paying" for it in both income and sales losses.

Corporate understands that their piece of the restaurant industry has been slimming, so aggression is a requirement if they wish to remain the top fast-food kingpin and this requires competitive premiums in the market.

We will see what happens in the future, but as of the moment McDonald's common stock closed at $84.74 yesterday, a steady decline since the announcement earlier in the week.