Influence of McDonald's Company on the State of the US Economy Essay

Influence of McDonalds Company on the State of the US Economy - Essay ExampleThe immemorial dispute currently facing McDonalds is the worsening state of the US economy, as concerns mount close a possible recession. In late January, the company reported a $1.2 billion fourth-quarter profit provided warned of weakness in the US commercialise. Same-restaurant sales were essentially flat in Dec. 2007, sparking fears that the one-month result might anticipate a trend. It was the growth in inter study sales that allowed for the companys overall gains. The American market is the companys largest and most crucial, with over 14,000 locations (McDonalds Posts Profit).A Feb. 8 company extort release reinforced the concerns about the domestic market, with US comparable sales only up 1.9 percent, eyepatch for Europe and the Asia/Pacific, Middle East and Africa bloc, sales were up 8.2 and 7.8 percent, respectively (Strong Global Results).If the current US slowdown leaks into the global mar ketplace, companies like McDonalds may no longer by able to direct on foreign sales to bolster the bottom line. The economic woes in America are modify many pocketbooks and forcing even habitual fast-food customers to cut back. After decades of economic expansion and ever-growing consumer expenditures, signs are legion that the long time of easy credit are over and that belt-tightening measures are becoming more the norm than the exception across the American landscape. The unfolding housing bubble collapse has had a major impact, as have proceed nationwide job contractions. Even value-oriented businesses like McDonalds are likely to be hit by electric potential customers staying home rather than coming out to their restaurants (Goodman 1).In addition, food prices have been rising steadily as have oil and gasoline costs, putting a severe squeeze on the number American consumer. In February, consumer confidence fell to its lowest level since 1992, according to a closely watch ed national survey. All of this is causing consumers to cut back on non-essential items (Grynbaum 1).Food is not a non-essential item, but the challenge to McDonalds management is to revive stagnant domestic sales by convincing more potential consumers that they are better served by visiting their local restaurant as opposed to making meals at home. Once a significant enough number of people become convinced of this, it would help to wear thin same-restaurant sales in the US out of its current flat-growth pattern.