McDonalds bounces back

Based on article from The Guardian, 13 October 2006

McDonalds have reached a six year high in share price on New York Stock Exchange. Not so long ago in 2003, McDonalds was in the red for the first time in its 50 years of existence. This comes after wide ranging critiscism of their junk food, which some argue has led to the culture of obesity. This new culture of health awareness was brought about by people like Jamie Oliver, film documentaries like "Super Size Me" and books such as "Fast Food Nation" by Eric Schlosser.

McDonalds explained this revival on their new healthier menus which include carrot sticks, garden salads, Deli sandwiches and fruit bags.

One of the factors some claim that contributed to customers being drawn away from McDonalds was the film documentary, "Super Size Me", which demonstrated the risks involved in eating large amounts of fast food. However, many claim that this still not deter people of low incomes from buying McDonalds food.

But soon after, McDonalds was already making up a "Plan to Win" that would attempt to change their image of unhealthy greasy food to one which was health-conscious and exercise friendly. McDonalds claim that they are beginning to succeed and the figures are testament to this success - during the third quarter, McDonalds sales went up by 5.8% at McDonalds 30,000 restaurants in over 100 countries. In Europe, sales went up by 9% in September.

However, what are all these sales? Are they really selling salads and fruit bags? No. Critics have pointed to the fact only 10% of total sales comes from healthy food and the rest from unhealthy options.