It was win some, lose some last week for Oak Brook, IL-based McDonald's Corp. It reported a net loss of $343.8 million for the fourth quarter of 2002 (the first quarterly loss in it's history) and announced plans to close 719 restaurants worldwide. Nevertheless, overall revenues inched up three percent to $3.77 billion in 2002 despite lower sales at restaurants open for at least one year in the U.S. and Europe. The QSR giant said it is developing plans to open another 850 locations. In hopes of reversing its faltering sales performance, McDonald's has overhauled its executive ranks, naming Ralph Alvarez, former president of McDonald's U.S.A., to the new position of executive vp-chief operations officer (PROMO Xtra, Jan. 21). Next month McDonald's executives will reportedly meet to hash out a new marketing strategy.
Elsewhere, McDonald's and the $110 billion fast food industry breathed a collective sigh of relief when a federal judge dismissed a lawsuit that blamed the QSR for causing obesity in its customers. U.S. District Judge Robert Sweet said the plaintiffs failed to show that customers didn't realize McDonald's food was unhealthy. "We trusted the court to use its common sense to dismiss this claim.
That's exactly what the judge has done. Common sense has prevailed," said McDonald's spokesperson Walt Riker in a statement. "McDonald's will continue to offer a menu of quality and variety that gives customers a wide range of choices. McDonald's has been providing nutrition information about our food for the past 30 years so that customers can make informed choices about what they decide to eat. McDonald's food can fit into a healthy, well-balanced diet based upon the choice and variety available on our menu."
