Second, McDonald’s now faces serious competition from supermarkets, Walmart (NYSE: WMT), convenience stores, and even Amazon (NASDAQ: AMZN). For example, Amazon’s Go cashierless convenience store sells a wide variety of readymade food.
In detail, Go is selling salads, sushi, sandwiches, soups, and other items. Many of those items sell for the same price as a Big Mac.
Unluckily for McDonald’s, Amazon Go is the latest entry in a crowded ready to eat market place. Kroger (NYSE: KR), in particular, has been pushing a wide variety of hot and cold ready to eat foods through its supermarkets for years.
Markedly, some Kroger Marketplace stores contain pizzerias, Asian cafes, and even cheese sandwich restaurants. Nor is Kroger alone, Amazon subsidiary Whole Foods sells an incredible variety of ready to eat foods.
This ready to eat revolution is a direct threat to McDonald’s because it offers a wide variety of consistent food at a competitive price. In addition, the ready to eat food is every bit as a fast and convenient as McDonald’s.Read more