By Katie Little– May 11 2015
Why do diners eat where they do and what does it mean for McDonald’s?
A new report from RBC Capital Markets seeks to answer just those questions as the country’s largest fast food chain struggles to turn around its domestic unit.
McDonald’s has strayed away from value to the chain’s detriment, RBC said.
“In our view, McDonald’s U.S. division eased away from the Dollar Menu without a viable replacement. Given the perceptions—and expectation—that McDonald’s should lead with value, we believe this has been a big reason for McDonald’s woes,” wrote RBC analysts in the report.
The decision about where to buy food is sparked by a variety of factors, according to a study done for RBC by market research firm Mission Measurement that surveyed 1,758 respondents. There are traditional factors such as affordability, taste and variety, and social ones, led by quality ingredients, sustainable ingredients and healthiness.
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