Early in 2002, Cantalupo retired after 28 years of service. Sales remained lackluster that year, and in October the company attempted to revive U.S. sales through the introduction of a low-cost Dollar Menu. In December 2002, after this latest initiative to reignite sales growth failed and also after profits fell in seven of the previous eight quarters, Greenberg announced that he would resign at the end of the year. Cantalupo came out of retirement to become chairman and CEO at the beginning of 2003.
Cantalupo started his tenure by announcing a major restructuring that involved the 2002 quarterly loss, which included the closure of more than 700 restaurants (mostly in the United States and Japan), the elimination of 600 jobs, and charges of $853 million. The charges resulted in a fourth-quarter 2002 loss of $343.8 million, the first quarterly loss in McDonald's 38 years as a public company. The new CEO also shifted away from the company's traditional reliance on growth through the opening of new units to a focus on gaining more sales from existing units. By 2003, with Ray Kroc's McDonald's Corporation nearly 50 and the McDonald's fast food restaurant concept itself old enough to qualify for AARP membership, the brand had perhaps become too familiar and sales figures stalled. Analysts, management, owners, and customers alike recognized that the aged chain required revivification. The question in need of solution was: How should McDonald's reinvent itself without losing its core values and maintain relevance in the marketplace? To that end, several new menu items were successfully launched, including entree salads, McGriddles breakfast sandwiches (which used pancakes in place of bread), and white-meat Chicken McNuggets. Some outlets began test-marketing fruits and vegetables as Happy Meal options. It was quickly determined that focus on customer experience was key in reversing the slippage. Then, a new global marketing campaign was adopted which was designed around the notion of the "Rolling Energy" phase. Launched on September 29, 2003, the campaign began featuring youthful images, hip music, and pop culture celebrities touting the tagline, "I'm lovin' it." Next, James R. Cantalupo was called back from retirement to head the corporation and its efforts to recapture golden luster. His plan was to keep things simple with a focus on the basics like customer service, clean restrooms, and reliable appealing food (not unlike Ray Kroc's mantra of QSC and V: Quality, Service, Cleanliness, and Value). In addition to the basics he determined to position the company with a more modern coherent image in order to foster a McDonald's "experience" for customers. More than an advertising campaign he and his team approved sweeping new architecture for McDonald's restaurants, the first major overhaul since 1969 when the now universally recognized signature double mansard roof became standard. In fact, Mr. Cantalupo personally approved abandonment of the ubiquitous and familiar mansard in favor of what became the "Forever Young" prototype topped with its swish eyebrow. This was the first global campaign in McDonald's history, as the new slogan was to be used in advertising in more than 100 countries. It also proved to be the first truly successful ad campaign in years; sales began rebounding, helped also by improvements in service. Cantalupo did not live to see the fruits of his labor and he died in 2004 just as his modern vision for McDonald's was getting underway. Nonetheless he had set things into motion causing a paradigm shift for the company resulting in a refreshed image without a dilution of brand identity.
In December 2003, for instance, same-store sales increased 7.3 percent. Same-store sales rose 2.4 percent for the entire year, after falling 2.1 percent in 2002. Also, in that month, McDonald's announced that it would further its focus on its core hamburger business by downsizing its other ventures. The company said that it would sell Donatos back to that chain's founder. In addition, it would discontinue development of non-McDonald's brands outside of the United States. This included Boston Market outlets in Canada and Australia and Donatos units in Germany. McDonald's kept its minority investment in Pret A Manger, but McDonald's Japan was slated to close its Pret units there. These moves would enable the company to concentrate its international efforts on the McDonald's chain, while reducing the non-hamburger brands in the United States to Chipotle and Boston Market, both of which were operating in the black.
McDonald's continued to curtail store openings in 2004 and to concentrate on building business at existing restaurants. Much of the more than $1.5 billion budgeted for capital expenditures in 2004 was slated to be used to remodel existing restaurants. McDonald's also aimed to pay down debt by $400 million to $700 million and to return approximately $1 billion to shareholders through dividends and share repurchases. Cantalupo also set several long-term goals, such as sustaining annual systemwide sales and revenue growth rates of 3 to 5 percent. In a move to both simplify the menu and make its offerings less fattening, McDonald's announced in March 2004 that it would phase out Super Size french fries and soft drinks by the end of the year.
In January 2012, the company announced revenue for 2011 reached an all-time high of $27 billion, and that 2400 restaurants would be updated and 1300 new ones opened worldwide.
http://en.wikipedia.org/wiki/History_of_McDonald's
doesn't mean we can debate
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