It is way too early to make a technical call regarding a secular top to the multi-year rally sustained by McDonald’s stock price since hitting a trough in 2003. Nonetheless, this is an interesting contrarian piece if you are considering the bearish case going forward.
McDonald’s may be the country’s No. 1 fast-food chain and one of its most-beloved brands, but when it comes to millennials, the Golden Arches says it doesn’t even rank among the demographic’s top 10 restaurant chains.
It’s enough of a concern that McDonald’s is launching its biggest product of the year, McWrap, to court a huge and influential cohort that values choice and customization. According to NPD Group, there are 59 million people ages 23 to 36 in the U.S. — the range it defines as millennials.
McDonald’s isn’t the only major marketer trying to reach millennials. Everyone from Coke and Gatorade to brewers and media companies are struggling to understand this group. There’s even confusion about just who millennials are in terms of age range (restaurant consultant Technomic counts them as 19-to-34-year-olds; McDonald’s, in an internal memo obtained by Advertising Age, classifies them as ages 18 to 32). Size estimates for this demographic group range anywhere from 59 million to 80 million.
But on one thing most marketers agree: “They’re 80 million [people] but they’re influencing the next 80 million, both younger and older,” said Gary Stibel, CEO at New England Consulting Group.
How to solve the millennial problem? McDonald’s hopes a sandwich item is the key.
Looks like their teens are trying to match the US obesity %s!
It’s one thing to be a contrarian, its another to be stupid! bet against MCD !? why even bother… NEXT
That’s precisely the type of psychology you see at major tops.
major bottoms, too..
nothing like a tray full of fries and a can of welch’s (grape(?) soda) to wash those tasty, sugar coated(it’s how they turn golden brown from deep fry..look it up) taters.
*no position
I questioned some time ago..
with exception to their dollar menu.
When did McD’s become so expensive?