McDonald's and Coca-Cola both report falling sales in the most recent quarter as younger customers lose taste for junk food.
America may be the "junk food haven," but as profits of Coca-Cola and McDonald's reportedly tumble means Americans are choosing healthier options.
Shares of the world's largest restaurant chain by revenue fell 2 percent and down
1.83 to $89.76 in pre-market trading on Tuesday following the company's announcement of failing third quarter revenues, operating income and earnings per share.
McDonald's global comparable sales also dropped 3.3 percent, reportedly caused by low customer traffic in all major segments coupled with the haunting meat supplier problems in Asia.
McDonald's reported a decrease in profits from $1.52 billion ($1.52 per share) last year to $1.07 billion ($1.09 per share) this year, a "worse-than-expected" fall of 30 percent.
The fast food chain was reported to have not been able to introduce new products and also failed to create marketing strategies that appeal to Millenials.
Many of McDonald's customers are Millenials who are veering away from burgers and fries and opting for fast-casual restaurant chains like Chipotle that offer a tad higher food price than McDonald's but reportedly serve better quality and healthier food choices.
Meanwhile, Coca-Cola appears to also be losing its fizz as its shares went down 6pc to $40.76 following a negative profit forecast for 2014.
"We have taken a hard look at our progress to date and realise that while the strategies we laid out at the beginning of the year are on the right track, the scope and pace of our actions must increase," said Muhtar Kent, chief executive of Coca-Cola.
Similarly, Coca-Cola has also been lagging behind to the rapidly changing customer preferences. Americans are reportedly tired of high-calorie, sugar-loaded carbonated beverages and are choosing healthier drinks instead.
On a side note, Soda companies Coca Cola Co., PepsiCo. And Dr. Pepper Snapple Group pledge to reduce calories in their products to encourage Americans to stop drinking too much sugary drinks.
The soda companies will reportedly promote and boost their offerings of lower-calorie sodas and bottled water, cutting portion sizes and increasing awareness on the amount of sugar present in the regular sodas by adding calorie information in vending machines and self-serve fountain equipment.
