4 Brand Challenges Facing McDonald’s New CMO

The guard is changing at the Golden Arches as longtime chief marketing and customer experience officer Tariq Hassan departs and is replaced by Alyssa Buetikofer. 

Currently chief marketing officer (CMO) of McDonald’s Canada, Buetikofer is a brand veteran who has held a variety of senior U.S. and global marketing positions for the Big Mac maker since 2011.  

She steps into the fast food chain’s U.S. marketing hot seat at a turbulent time for the business. 

In the final quarter of 2024, McDonald’s posted its biggest global sales decline since 2020. While U.S. sales returned to growth, they were still slow at 0.3%. According to internal data, though, 90% of the U.S. population visits the fast-food chain every year, showing its is still top of mind for diners.

In its homestead, marketing will hold the key to winning the “value wars” as McDonald’s competes with Taco Bell and Burger King in a race to the bottom to appeal to cash-strapped customers. 

The brand is also fending off the threat of GLP-1 weight loss drugs and criticism around its DEI policies. On top of this, it recently navigated an E.coli outbreak linked to its ingredients.

Lawrence Parnell, senior fellow for public relations and communications at the College of Professional Studies at George Washington University, says McDonald’s new CMO might want to start planning by resolving what not to do first—whether that’s saying no to cutting prices, or making no apologies for a change in corporate policy—to “arrive at a viable marketing comms approach that will resonate with the public and protect [the] brand.”

ADWEEK explores four business challenges Buetikofer will face in her new role, and some insight into how she might steer McDonald’s through them. 

1. Supersizing value

McDonald’s is looking to restore its reputation as a value destination, with CEO Chris Kempczinski saying in the company’s most recent earnings call that it would focus on serving “everyday value and affordability to customers.”  

The value wars have been heating up since last year, as rising fast-food prices—fueled by factors like surging labor and ingredient costs—became the subject of eye-rolling social media posts and news headlines. Most Americans (78%) now view fast food as a luxury because it’s become increasingly expensive, according to a 2024 survey from financial advice website LendingTree. 

In response, fast-food brands including McDonald’s, Taco Bell, Burger King, Wendy’s, Popeyes, and Dunkin’ have tried to woo cost-conscious customers with new value deals. In January, McDonald’s debuted its McValue menu, the first update to its value offering since 2018. 

An ad campaign, created by Wieden+Kennedy NY and starring actor John Cena, hyped the McValue perks, which include a “buy one, add one for $1” offer and a $5 meal deal. 

In this competitive landscape, McDonald’s may have the best chance of success if it prioritizes value across all aspects of the customer experience, not just price, said Cait Lamberton, professor of marketing at the University of Pennsylvania’s Wharton School. That could mean improving and emphasizing offers like fast and efficient service, low-waste packaging, good Wi-Fi, or easy parking at restaurants.  

2. Navigating the Rise of GLP-1 Drugs  

By 2035, Morgan Stanley Research estimates 24 million people, or 7% of the U.S. population, could be using GLP-1 appetite-suppressing drugs including Ozempic and Wegovy. The same analysts estimate the nation’s consumption of fizzy soft drinks, baked goods, and salty snacks could fall by up to 3% by the same year.

Along with other fast food titans, McDonald’s will have to adapt its product and marketing strategy as people eat less and opt for smaller portions. A focus on marketing smaller, low-value options could be key to riding this new wave of consumer preferences.

“McDonald’s new value menu aligns with broader economic pressures, but may also reflect a strategic response to changing consumer behavior driven by GLP-1 drugs,” wrote Citeline analyst, Greg Rossi, in a recent blog.

“As users of these medications adopt more mindful eating habits, they might opt for smaller portions or skip fast food entirely. Extending the $5 value meal and introducing low-cost bundling options could help McDonald’s retain relevance by emphasizing affordability over indulgence,” he continued.

3. The DEI Culture Wars

McDonald’s recently became the latest brand to cease some of its diversity, equity, and inclusion (DEI) initiatives amid conservative backlash in the U.S.  

In January, the company said it would retire specific goals for achieving diversity at senior leadership levels and end a program that encourages suppliers to develop diversity training. The U-turn came four years after it introduced diversity initiatives after facing sexual harassment lawsuits filed by employees and a discrimination lawsuit brought by former franchise owners. 

While McDonald’s decision to pull back on DEI is part of a current trend, it may inflict long-term damage on the brand, said Jack Mackinnon, Collage’s senior director of cultural insights. Collage’s America Now 2024 study showed that 81% of Americans say inclusive marketing is just as or more important to them than it was four years ago, and that number rises among Gen Z, millennials, Black, Hispanic, and LGBTQ+ consumers. 

“Consumers have a low tolerance for what they see as performative efforts right now, and if brands look like they’re caving to political pressure rather than standing by their values, it could hurt them in the long run,” Mackinnon said.  

Jo-Ellen Pozner, associate professor of management at the Leavey School of Business at Santa Clara University, raised another dilemma: McDonald’s DEI rollbacks conflict with its espoused corporate values, which include inclusion and “opening our doors to everyone.” 

“McDonald’s stakeholders—customers, employees, and investors—will find it hard to predict what this means for McDonald’s and its brand identity. That confusion, in turn, can easily compromise McDonald’s reputation for reliability,” Mackinnon said.

4. Restoring Confidence Post E. Coli Crisis  

In October 2024, the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) traced an E. coli outbreak back to onions served on Quarter Pounders.  

More than 100 people across 14 states got sick, with at least one death linked to the breakout. The incident prompted a proposed class action lawsuit against McDonald’s and caused its stock to fall by as much as 7% in the weeks immediately after. 

In an internal memo published by CNN afterwards, outgoing CMO Hassan and Michael Gonda, the chain’s U.S. chief impact officer, said McDonald’s pledged $65 million to aid franchisees impacted by the incident. An additional $35 million was committed to marketing programs that can help drive people back into restaurants.  

In December 2024, McDonald’s was given the all clear by the CDC. However, Buetikofer still faces a challenge in managing the long-term fallout, including restoring confidence among consumers.