Big Mac Earnings Attack

Nick Gillespie | December 17, 2002

The Washington Post, among other sources, is reporting that

"McDonald's Corp., the world's largest restaurant company, on Tuesday said it would post its first-ever loss in the fourth quarter, as it struggles to turn around its U.S. business and pulls back from expansion in some foreign markets."

The real question is why it took so long, especially when you consider the chain hasn't introduced a truly popular new menu item in decades (sorry, all you Arch Deluxe fans out there). If you ever need a reminder of the relentless efficiences of the market--and how they typically redound to the benefit of customers--the fast food industry is a case in point. Over the years, McDonald's and others have had to jack up portion size, give free refills, drop prices, give away toys to kids, build massive playgrounds, etc., etc., etc., all in the service of getting people to come on in.

With overseas expansion slowing and domestic sales flatter than a day-old Coke, McD's is in the red, at least until The Grimace stops chasing tail with Donald Trump and gets back to manning the fry vat.