Food Wars: How Fast Food Giants Ensure Long-Term Success

August 1, 2014

Last week, Chipotle posted extremely impressive earnings, beating all the analyst’s expectations by a long shot.  In comparison, McDonald’s reported another quarter of lackluster sales growth in the United States. Over the last several years, McDonald’s has been struggling to stay relevant while fresher concepts like Chipotle seem to be printing money. Why is that?

In the high-volume restaurant world, same store sales are one of the most important success metrics. In three of the last four quarters McDonald’s has seen flat to negative same store sales in the United States, last week they decreased 1.5%.  In comparison, Chipotle just posted a whopping 17% increase. According to the Wall Street Journal, the U.S. has been a particularly challenging market for McDonald’s.