McDonald's still holding dominant position in the market

McDonald's sales weakened and varied for over two years and it appears that the company has been in headlines with negative news. Apparently dominance of the world's largest chain of hamburger fast food restaurants will be affected as a result of entry of new food restaurants chains. McDonald's management has taken many steps to revive the sales and improve the margins.

There are many strong points of the company, which makes it dominant in the market. McDonald's has over 14,300 locations in the US and because of that it's an option readily available to people around the world. Burrito chain Chipotle is growing but still only a fraction of that size with nearly 1,800 locations.

McDonald's is looking forward to decrease its growth to its lowest level in five years as a result of its recent struggles. However, it's taking some steps i. e. it is planning to add 600 to 700 restaurants across the world this year. It is already having over 36,200 restaurants across the world.

It also has huge marketing power, mainly because its franchisees need to contribute at least 4% of their sales to advertising. It would be using at least $1.24 billion in advertising after $31.1 billion sales by US franchisees.

Decline in recent sales in the US is putting pressure on franchisees, still paying for fixed costs such as electricity and labor. However, according to industry tracker Technomic, McDonald's restaurants are generating more cash than their peers. The average McDonald's restaurant collected $2.5 million in sales in 2014.

McDonald's CEO Steve Easterbrook said that he is looking forward to make McDonald's a 'modern, progressive burger company'.