Intermediate 
McDonalds is the worlds biggest burger chain and a global emblem of American consumer capitalism. But, these days, the golden arches of McDonalds are looking a little tarnished. After a decade of expansion, customers around the world dont seem to be lovin it any more. McDonalds has revealed that worldwide sales dropped by 3.3% from 2013. The set of results were described as awful.
The company has problems almost everywhere. In China, sales fell by 23% because local media showed workers at a local supplier claiming to use out-of-date beef and chicken in McDonalds and KFC products. In Europe, sales are down by 4%, mostly because of problems in Ukraine and the anti-western mood in Russia. Around 200 of McDonalds 450 restaurants in Russia are being investigated by health inspectors and ten have been closed.
But it is in the US, where McDonalds has around 40% of its restaurants, where the crisis is deepest. Almost 60 years since Ray Kroc opened his  rst restaurant in Des Plaines, Illinois, consumers are losing their appetite for a Big Mac and fries.
McDonalds has seen 12 straight months of falling sales in its massive home market, with sales down 4.1% in the latest quarter. Younger diners are deserting the restaurant in droves to eat out at rivals such as Chipotle Mexican Grill. The number of 19-to-21-year-olds visiting McDonalds once a month has fallen by 13% since 2011.
To add to the companys problems, McDonalds hamburgers were recently named the worst in America in a poll of more than 32,000 American diners, who said they would rather eat a burger at Five Guys, Smashburger or Fuddruckers. McDonalds is also widely perceived as less healthy than most of its rivals, especially Chipotle, with its antibiotic-free meat and locally sourced, seasonal produce  although local can mean 350 miles away.
The depth of consumer mistrust of McDonalds was exposed by a consumer outreach exercise the company launched in the US in October. Have you ever used pink slime in your burgers? was one question on the Our Food Your Questions website  this refers to the controversial beef  ller used for dog food that is sprayed with ammonia to make it  t for human consumption. McDonalds has not used the meat product since 2012 but Chief Executive Don Thompson acknowledged the company had a job to do in addressing misconceptions about the freshness and quality of its ingredients.
Yet, just as McDonalds has been losing the customers who will pay a bit more for food they think is fresher and healthier, it has also lost its edge in fast-food essentials: speedy service at low prices. Ever since it introduced $2 items on its dollar menu, it has gained a reputation for being more expensive than its rivals, while many consumers complain that service is slower.
The expensive tag was unjusti ed, said Mary Chapman at food analysts Technomic. Prices have indeed gone up but they havent gone up as quickly as the rest of the fast-service chains in the US. Prices at McDonalds have increased by 4.8% since 2009, well below the fast-food average (up 19.4%), and the cost of fast casual eating, a category that includes Chipotle, is up 16.9%. US consumer prices rose 11% over the same period.
But critics are not wrong about the longer queues. McDonalds has a bigger menu than some, with more complicated items  its chicken McWrap takes 60 seconds to make. I think it is worth waiting but the guy behind me who wants his double cheeseburger for a dollar might not, said Chapman.
In the UK, McDonalds has turned around its business, which makes Britain a rare bright spot for the company. A competitive breakfast menu, improved coffee and free wi-  have given McDonalds a broad appeal in the UK, said consultant Peter Martin, adding that 56% of British adults have visited a McDonalds restaurant at least once in the last six months.
Executives are promising to fight misconceptions about its food in its home market. Thompson has promised more organic food and custom-made burgers but, to cut down queues, he also wants to introduce simpler menus. Analysts are not sure how the company can solve the problem of simpler menus and greater choice over  filings.
They want to simplify the menu but enhance its ability to customize and that sounds tricky, said Mark Kalinowski at Janney Capital Markets. Only four out of McDonalds 14,000 US restaurants had so far tested build your own burger, he said. Right now, we are sceptical; we would like to see more detail.
Meanwhile, despite the declining sales, the chain continues to expand globally: by the end of 2014, it expects to have 1,400 new restaurants. Kalinowski expects McDonalds market share will continue to shrink but he, too, warned against writing off the company. We think it will be number one for not just years but decades to come.