Can’t beat the king: McDonald’s still dominates fast food, and here’s the surprising reasons why

Can’t beat the king: McDonald’s still dominates fast food, and here’s the surprising reasons why

McDonald's has been hammered recently but struggling sales and bad press, but the mega corporation has a few tricks up its sleeve to stay at the top.

McDonald’s has had a rough go of it in the last two years with struggling sales and bad PR that has tarnished its image somewhat, but the fast food giant is nowhere near losing its dominance, according to an Associated Press report.

That is not to say McDonald’s could lose its market leadership at some point, but it would be a very long ways down the road, and there is plenty of things the corporation do until then to reassert its brand power.

One very important reason is the massive reach it has across not just the United States, but also the world. There are more than 14,300 McDonald’s locations in the United States and more than 36,000 worldwide. That growth will slow down to its lowest level in five years due to recent problems, but it still will be adding up to 700 more restaurants worldwide this year.

By comparison, burgeoning burrito chain Chipotle boasts just 1,800 stores, and will open 205 this year, according to estimates.

In addition, McDonald’s has tremendous marketing power, as they require their franchisees to contribute 4 percent of their sales to advertising, adding to a huge pile of money that goes to both national advertising as well as regional campaigns.

McDonald’s is also much more profitable than most, and in 2014 the average restaurant pulled in $2.5 million in sales, compared to $1.6 million at Wendy’s and $1.2 million at Burger King. The popularity of their breakfast menu has helped drive those sales.

McDonald’s has installed fresh leadership at the top, tapping Steve Easterbrook to be CEO recently, who said he would push for McDonald’s to reposition itself as a “modern, progressive burger company.”

And in the end, it’s all part of the game, and McDonald’s has played it before. Even the biggest and best will go through slumps, and McDonald’s is no different. With all the different tools at its disposal, its market dominance is safe for the time being.

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