McDonald's has been too obsessed with fast-casual dining restaurants like Chipotle Mexican Grill and Panera Bread and needs to refocus if it wants to recover from its slump, a former executive with the fast food giant told CNBC on Wednesday.
"Focus on the business you're in versus focusing on the business you're not in. I think that obsession has gotten them off track and will continue to get them off track," said Larry Light, former chief marketing officer of McDonald's.
Earlier this week, the company reported global same-store sales shrank 1.8 percent in January, worse than analysts were expecting. Last month, it warned business would be weak in the first half of 2015. McDonald's also said it is cutting its annual construction budget to the lowest in more than five years as it opens fewer restaurants in struggling markets.
All this comes after a tumultuous year, one of the toughest in decades for the chain. McDonald's is now trying to stage a recovery, simplifying its menu and replacing its CEO.