As things stand now, the company is heavily dependent on value options, variety in menu, locally relevant items as well as reimaging programs to drive sales ahead. Our Take Oak Brook, Illinois -based McDonald's has performed rather weakly in the recent past, and now the decline in October comps has added to its woes. The implementation of austerity measures in Europe owing to the sovereign debt crisis, commodity cost inflation in the U.S. and decelerating growth in Asia compel us to have a bearish outlook on the stock at the current level. Although the company is consistently striving to drive profits in these difficult times by resorting to value-proposition and gaining traction in coffee markets, it continues to face tough competition from peers like Yum! Brands Inc. ( YUM ) and The Wendy's Co. ( WEN ) in all aspects of its business. Most of the restaurants began to innovate menu regularly, offer at low prices and last but not least, revamp restaurant's interiors.