McDonald’s has made a lot of changes over the course of the last couple years. Investors were skeptical at first, but the company’s CEO seems to have one its shareholders over. Now McDonald’s has a new plan to reverse its sliding grip on US fast food sales: take over the “dead zone”, or the period between lunch and dinner which are a doldrums for fast food chains. Between roughly 2 and 5 pm, fast food outlets do very little business. McDonald’s thinks there is an opportunity there, and counter to its recent focus on healthy food, it is rolling out the sweets and pastries to try to lure customers in during those hours. It will offer some new indulgent treats with aggressive pricing. It also says there is an opportunity to expand its coffee business.
FINSUM: We think this is a sharp idea. People seem to get an energy low in the middle of the afternoon, so peddling fresh coffee and sweets then seems like a solid strategy.
The market has had a lot of anticipation about the release and production schedule of Tesla’s new model 3. Many are worried that Elon Musk’s company will not be able to meet its production quotas, leaving the company unable to meet the huge volume of pre-orders it received for the new model. The company has just months remaining to deliver around half a billion Dollars worth of refundable orders. It plans to double its production rate within six months, and then quintuple it by the end of next year. The rollout will be slower than previously as the company wants to avoid the debacle it faced with the release of faulty Model X’s when they debuted.
FINSUM: This is a make or break challenge for the company and they have a poor track record of keeping to production schedules.
Nike has done a lot right as a company. Despite this, the Oregon-based sportswear maker has been maligned recently by the press and investors because it has seen weakening wholesale orders and has let its competition make headway. However, it now has a chance to reverse one of its big missteps of the last few years. One of the areas where Nike has been deficient is in latching on to the Millennial audience, and specifically the explosion of the “athleisure” trend that has gripped fashion the last couple of years. The new chance to rectify lays in the fact that Nike has just reversed course and decided to sell through both Amazon and Instagram, both channels popular with Millennials, according to Raymond James analyst Cedric Lecasble.
FINSUM: Nike can probably grab market share pretty quickly if its sets its mind to the space and utilizes both of these new distribution channels.