What factors are important in understanding this decision situation?

Part of their challenge has been responding to the tastes and priorities of a key demographic target: millennials. Born between roughly 1979 and 1994, this generation accounts for about 25 percent of the U.S. population and holds $1.3 trillion in spending power. Millennials care about a high quality of life, prefer recycling or re-using to buying new, and—most importantly to McDonald’s—favor healthy food made of fresh ingredients. They are also famous for being “digital natives,”
and they pay attention to the ethical and sustainable business practices of the firms they do business with.
Steve Easterbrook took the helm as CEO in 2015 and began making changes that address these priorities. At the top of the list is improving the food by using fresh (rather than frozen) beef in its popular Quarter Pounder. A new line of customizable burgers was launched and the chain is also taking a fresh approach to another fast food favorite—chicken, a product line heavily dominated by KFC and Chick-fil-A. McDonald’s artisan grilled chicken and Buttermilk Crispy Tenders have been popular with customers, and they now have the health and public relations benefit of being antibiotic-free. And by 2025, the company is committed to using only cage-free chicken eggs in their breakfast menu items.
McDonald’s has made other changes that sit well with millennials, such as upgrading their restaurants through their “Experience of Tomorrow” initiative. Improvements include updated décor, self-order kiosks, and even table service. A mobile ordering and payment app makes ordering easier. Don’t care to drive to McDonald’s? No problem, the golden arches will come to you via their delivery service.