McDonald's Is Making 3 Drastic Changes To Lure Cash-Strapped Americans

The fast food chain missed Wall Street's expectations for earnings yesterday, and executives are anticipating a rough few months as cash-strapped Americans watch what they spend.

McDonald's also faces more competition than ever, as Americans turn to fast-casual chains like Panera Bread and Chipotle.

The company is taking three steps to bring back customers. They are:

Expand breakfast. McDonald's breakfast menu is unanimously popular with consumers. To capitalize on the existing market, McDonald's added an Egg White Delight to its breakfast menu. It also started offering some items, like Egg McMuffins and hash browns, at night. CEO Don Thompson said the chain is toying with the idea of an all-day breakfast.

Offer premium menu items. In addition to the Egg White Delight (which is made with white cheddar), McDonald's also rolled out the McWrap and Blueberry Pomegranate smoothie.

Redesign the arches. About half of McDonald's restaurants will get renovations to reflect the "current contemporary look," — muted colors and modern exteriors instead of red and yellow decor — the company said yesterday. McDonald's hopes this will help for it to compete with fast casual chains like Panera Bread, which have eaten up market share in recent years.