McDonald's Falls Behind in Ad Spending

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Oct. 21 (Bloomberg) –- Alix Steel reports on McDonald's performance on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

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Also mcdonald's, shares trading lower after sales trailed estimates of analysts, and the hamburger chain was saying the u.s. sales decline despite an array of new menu items and healthy initiatives.

Or more on mcdonald's, i went to bring in bloomberg's alix steel.

What went so wrong?

They cost about one dollar per wing, and they are also pricey.

It is said they were not necessarily very competitive, and that possibly turned off people, as well.

They were not totally available.

We will not know for sure.

Also, there was a diminishing ability to raise menu prices.

We are not seeing enough juice to do that again, and this is looking pretty grim.

It looks kind of ugly.

Asia was down.

This was not so great.

This was despite all of their effort and cash.

It was a competitive environment, right?

You have the fast casual, the more upscale chipotles of the world.

Goldman sachs did a survey and found that mcdonald's was the restaurant that people would recommend the least.

It was chick-fil-a that was number one.

I think it is interesting about people referring their friends.

Mid donald's, dead last, and yet mcdonald's is the brand most people know.

They thought the stores did not look that great and did not have a modern feel, but nevertheless, mcdonald's still makes about 2.5 million revenue per store.

They are doing better than their competitors.

And are they losing customers?

In this survey, goldman sachs look at that, as well, and they said they are spending double digits on advertising, falling below that.

Their conclusion was they are actually losing customers.

Their conversion rate is falling.

People end up knowing about mcdonald's and say they visited a store in the last year.

They are actually losing people.

They are not just losing per person.

The stock underperformed this year.

We were talking to someone at piper jaffray.

It was doing well not on fundamentals but multiples.

The fundamentals continually come in weaker.

There is weaker pricing going on in terms of what you would pay for these stocks.

All right, alix steel, given us the mcdonald's numbers right there.

We will be on the market again in 30 minutes.

"money moves" is next.

This text has been automatically generated. It may not be 100% accurate.


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