McDonald’s PESTEL analysis:

Political factors:
 Conflicts between countries can shift trade agreements creating a hostile for
McDonald’s to operate overseas and in some cases to shut down their
business.
 Constant change in public health agreements can also increase their operating
costs.
Economic factors:
 McDonald’s imports most of its raw materials from other countries, thus the
fluctuation of exchange rates can affect their business.
 McDonald’s operates in many countries which make their sales dependent on
the economy of the country they operate in. if the country’s economy is doing
great people will have more disposable income and they will spend more in
consuming goods such as food from McDonald’s, but if the economy is facing
problems this will negatively impact the sales of McDonald’s.
 McDonald’s is known for their high turnover rates which can affect the
productivity of the employees and the general company performance.
Social factors:
 Nowadays there is a huge change in customer behavior and lifestyle, people
now are more into healthy lifestyles, and there is a rise in low carbs and low
sugar diets. Which makes McDonald’s a less desirable choice for health
conscious consumers. That’s why McDonald’s needs to incorporate more
healthy options in their menus.
 Each country has its own culture and values, McDonald’s should respect this
when deciding on the food menus of each country.

Technological factors:
 McDonald’s has integrated some new technologies in their processes and
operations such as online ordering allowing customers to grab their meals
without waiting in line, and also self service ordering kiosks.
Environmental factors:
  McDonalds has set a target to have 100% of its packaging material come from
renewable or recycled sources and recycling will be done in its every
restaurant by 2025.
Legal factors:
 Increasing animal welfare regulations can impact McDonald’s that’s why they
need to make sure that all of their meat producers work ethically and in line
with animal welfare laws