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McDonald's Earnings Plunge, Menu Changes Announced

McDonald's Earnings Plunge, Menu Changes Announced

McDonald's announced today that diluted earnings per share fell 31% in the first quarter compared to 1Q14 and that revenue stumbled 11% in the same period, to $5.96B. The struggling fast food giant's chief Steve Easterbrook acknowledged that the company's recent struggles necessitated urgent, "fundamental" changes rather than "incremental steps."

Those steps will include "meaningful" menu changes to be announced next month. McDonald's recent struggles can be traced in part to increased competition from "fast casual" competitors like Shake Shack and Chipotle that emphasize local and relatively healthful ingredients. Additional woes in the first quarter included a strike in West Coast ports and a food safety scandal in Asia, where same-store sales slid a troubling 8.3%.