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McDonald's defends nutritional options, children's marketing

The company plans between 1,500 and 1,600 new restaurants this year, most of which will open in new and emerging international markets.

May 23, 2013 by Alicia Kelso — Editor, QSRWeb.com

As expected, McDonald's shareholders voted today against a proposal to deliver nutritional reports during its annual shareholders meeting in Chicago. Just 6.3 percent supported the idea.

And, as usual, the company had to field numerous hardball questions regarding the nutritional content of its menu items and its children's marketing strategies.

CEO Don Thompson, in his first year at the helm of this particular meeting, responded to proxy questions and comments. Many of these attendees demanded the chain upgrade its nutritional menu options and/or quit marketing directly toward children.

"I don't think it's fair when big companies trick kids ... into believing that junk food is good for them. Many kids my age are getting really sick. Will you stop trying to trick kids into eating your food all the time?" 9-year-old Hannah Robertson asked Thompson.

"We don't sell junk food. My kids also eat at McDonald's and we sell a lot of fruits and vegetables and we're tring to sell more. We are making a lot of changes and will continue to do so," he said.

Thompson later added that McDonald's sells food made with real beef, real chicken, real eggs, etc., in a way that is affordable.

Some proxy attendees questioned McDonald's targeted marketing toward communities of color through programs such as 365Black.com and the use of celebrity spokespeople such as LeBron James and Venus and Serena Williams.

"We do not, have not and will not target people of color with some kind of subversive marketing. The epidemic of obesity, relative to the types of neighborhoods I grew up in, is not about McDonald's. You're accusing us of doing things we don't do," Thompson said. "Lebron James and the Williams sisters, they don't view us as the brand you view us as. We're not the brand you describe."

He added that McDonald's is part of the Council of Better Business Bureaus' self-regulatory Children's Food and Beverage Advertising Initiative and follows its guidelines on how to "responsibly communicate to children." The company signed on in 2006.

"We have 1.8 million employees, many of whom have children. If any of us believe we're doing harm to our children, we wouldn't be working for McDonald's," Thompson said. "We are not the cause of obesity. Ronald is not a bad guy; he's a clown. Let your kids have some fun."

Other highlights from the meeting

Executives outlined the company's growth agenda, predicting between 1,500 and 1,600 new restaurants this year, most of which will open in new and emerging international markets.

China is the company's fastest growing market at the moment, and will be the second in the system to reach a 2,000-unit footprint, behind the U.S. Other international markets being targeted by McDonald's include Brazil, Russia, India, Saudi Arabia and Southeast Asia. The company anticipates opening in Vietnam in Q4 this year or Q1 2014.

Finally, to improve customer service efforts, executives discussed expediting the queue through a focus on dual-point service.

"We continue to move forward and migrate to the dual-point, where customers order and then move to the side. They find it more personal and faster and we find it more accurate," said Tim Fenton, chief operating officer.

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