Forbes - The Secret of McDonald's Recent Success

Six years ago, McDonald's looked obsolete. The company announced the first quarterly loss in its history, and its stock fell to a woeful $13 from an all-time high of $48.

Today, McDonald's stock is trading at nearly $60, same-store sales have grown for the 56th straight month and the company can boast of having achieved double-digit operating-income growth during the onset of last year's financial crisis.

After a better-than-expected quarterly earnings announcement on Jan. 26, Jim Cramer, the famously outspoken market analyst, went so far as to call McDonald's "the best-run major international company in the world."

Some observers credit the focus on better execution, beginning in 2004 when Jim Skinner was hired as chief executive officer. Others point to the recent redesign of the company's restaurants and the introduction of espresso drinks, or to consumer trends in a tough economy (although McDonald's (nyse: MCD - news - people ) had equally impressive gains in the happier time of 2007). But the real story behind the resurgence of the chain has to do with something simpler: empathy, the ability to see how the world looks through the eyes of others.

External Source - For the complete article click here

Source - Forbes


Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet