McDonald's Has Forecast Its Last Loss

Many analysts have raised concerns about the strategy's impact on profit margins. In fact, McDonald's said in December that its fourth-quarter margins would come in below year-ago levels.

Right now, CEO Cantalupo seems to think the company's biggest issue is fixing its restaurants. In the past year, McDonald's has lost customers as a result of poor service and lack of cleanliness at its chains.

"Some have suggested we need dramatic change," said Cantalupo. "Clean bathrooms and hot food served quickly would be changes. The foundation of our restaurants is not what it used to be."

Cantalupo said he will continue to review McDonald's operations and close low-volume restaurants. The company will also abandon a long-term technology project that would have cost more than $1 billion over the period of its development. "This is not the best use of our capital right now," said Cantalupo.

The CEO also addressed a question about whether McDonald's is a growth entity. Some have said it should be considered a mature business. "Right now we need to fix the basics. I do want to grow, but not just in new units. I am confident growth will come in existing restaurants as well," he said.

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