Why would fast food chains be suffering financially when they shouldnt be?
Answer The problem is these companies have experience rapid growth over the last several decades. Executives and investors get addicted to fast growth and sometimes will do stupid things to artificially maintain that growth. The burger industry is seeing its market grow slower if not shrink over health concerns and the increase in alternatives such as Mexican restaurants (ie. Taco Bell). When the market is not growing and the company wants growth it has two choices enter a new market or increase market share. McDonalds has entered other markets such as pizza, Mexican food, and chicken, by buying small companies with limited success. The other option is increase market share, McDonalds has tried to do this by introducing the “Healthier Choice” menu. The problem is all the hamburger joints are trying to be healthier. Burger Kings attempt to increase market share has been to lower their prices, unfortunately for them they have created a price war, driving down prices along with margins. W
