Frank T. Rothaermel, John Kim
McGraw-Hill Education (MH0050-PDF-ENG)
September 28, 2017
The case is written from the perspective of McDonald’s boss Steve Easterbrook. Easterbrook took office in March 2015, and the case highlights the recent dramatic decline in the company’s performance amid increasing competition. The case also describes Easterbrook’s strategic initiatives in an attempt to restructure McDonald’s assets. With sales of approximately $ 25 billion (in 2017) and approximately 45,000 restaurants worldwide (including 27,000 in the US), McDonald’s remains the largest Quick Service Restaurant (QSR) chain. At the same time, McDonald’s has been fighting on several fronts in recent years. McDonald’s tried to be “everything to everyone” and was the victim of a “deadlock in the middle” without a clear strategic position. With such a large global installed base of restaurants and franchises, any change emanating from McDonald’s headquarters requires significant leadership, investment and potential risk.
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