How McDonald's Plans to Battle Tough Market Conditions
McDonald’s Corporation has suffered some tough hits this summer – Millennials and young parents are expanding their lunch vocabularies beyond the Happy Meal, and the food safety crisis in China with McDonald’s supplier hit the franchise especially hard. Now, for the second month in a row, the proof is in the numbers. This week McDonald’s announced its global comparable sales for August, and the percentages are down a total of 3.7 percent across the board.
According to the latest financial release, McDonald’s saw a 2.8 percent decrease in the United States and a more modest 0.7 percent decrease in Europe. McDonald’s Asia-Pacific, Middle East and Africa (APMEA) sector was hit hardest by far, experiencing a staggering 14.5 percent decrease in comparable sales against last year for the month of August.
“During August, McDonald's global business faced several headwinds that impacted sales performance,” said McDonald's President and Chief Executive Officer Don Thompson, who notes that the company is working hard on several initiatives to combat these losses and recoup sales in the future. In the United States, for example, McDonald’s is working on beefing up customer service and new menu items that could entice a rise in business – most notably, this week McDonald’s filed a trademark application for the term “McBrunch,” potentially signaling that McDonald’s is doubling down on its efforts to beat Taco Bell and reign supreme as the breakfast menu of choice.
Recovery is understandably more difficult in the APMEA sector, where supplier issues in China have left consumers with a loss of trust and a lot of unease. In this case, McDonald’s is focusing less on menu development and more on recovery strategies to rebuild consumer trust. While much the damage may already be done for this year – McDonald’s acknowledges that will be adjusting its overall 2014 financial outlook in light of the related sales losses, which are predicted to affect third quarter results by as much as $0.20 per share – making the effort is still imperative toward growing, whether the results are seen in this year’s sales or next year’s.
“As a System, we are diligently working to effectively navigate the current market conditions to regain momentum,” says Thompson. “For the long term, we remain focused on strengthening the key foundational elements of our service, operations and marketing to maximize the impact of our strategic growth priorities for our customers and our business.”
Tyson Foods 2050 net-zero target with no bargain on taste
Tyson Foods, a leading global protein company, aims to achieve net-zero greenhouse gas emissions across its global operations and supply chain by 2050.
The company supplies 20% of the USA’s beef, pork and chicken and is best known for products such as Jimmy Dean, Hillshire Farm and BallPark.
As the first U.S.-based protein company to have an emissions reduction target approved by the Science Based Targets initiative (SBTi), this ambition, in conjunction with the release of the company’s fiscal year 2020 Sustainability Progress Report, underscores the company’s commitment to help combat the urgency of the growing climate change crisis.
Food giant Tyson will meet net-zero targets
The high level of meat and diary that humans consume is fuelling climate change for many reasons:
- Gassy cows, sheep and goats are responsible for up to 14% of all greenhouse emissions.
- 75% of agricultural land across the world is used for animal agriculture. This includes land for the animals to graze upon, as well as the land used for the crops which animals eat to grow in. The amount of land required leads to deforestation.
The move to net-zero is an expansion of Tyson Foods current science-based target of achieving a 30% GHG emissions reduction by 2030, which is aligned with limiting global temperature rise to 2.0c.
As a global organisation with 239 facilities and 139,000 employees worldwide, achieving net-zero emissions is a large task, which will require a collective effort from every team member, in addition to external stakeholders.
Tyson Foods’ goals include:
- For emissions to align with limiting global temperature rise to 1.5℃, consistent with the Paris Agreement, by the end of 2023.
- Expanding the company’s current 5m acre grazing lands target for sustainable beef production practices by 2025.
- Continuing work to eliminate deforestation risk throughout its global supply chain by 2030.
Tyson foods supports accountability and transparency
“We believe what good food can do for people and the planet is powerful. Our net-zero ambition is another important step in our work toward realising our aspiration to become the most transparent and sustainable food company in the world,” said Donnie King, Tyson Foods President and CEO.
“At Tyson Foods, we believe progress requires accountability and transparency and we are proud to exemplify that as we work to achieve net-zero greenhouse gas emissions by 2050,” said John R. Tyson, Chief Sustainability Officer, Tyson Foods. “As the first U.S.-based protein company in the food and beverage sector to have an emissions reduction target approved by the Science Based Targets initiative, we hope to continue to push the industry as a leader and remain committed to making a positive impact on our planet, with our team members, consumers and customers, and in the communities we serve.”
Tyson Foods’ new ambition, along with the company’s existing sustainability goals, is aligned with the UN Sustainable Development Goals, which include:
Goal 2: ‘End hunger, achieve food security and improved nutrition and promote sustainable agriculture’.
Goal 15: ‘Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.’