McDonald’s pulled the plug on its long-running Olympics sponsorship three years before the deal was due to expire, Reuters reports. The fast-food company has been a sponsor of the Olympic Games for 41 years, and first became involved in the Olympics way back in 1968.
The move reflects McDonald’s “focus on its core business as well as rising Olympics sponsorship costs and declining TV ratings,” the story reports.
“McDonald’s deal would have run through the Tokyo Olympics in 2020, and bowing out will likely to save it hundreds of million of dollars if it had continued into the next four-year Olympics cycle and beyond,” Reuters reports. “McDonald’s has been trying to hold down costs as it invests in improving food quality, restaurant service and online ordering to woo back U.S. diners. Intense competition has gnawed away at sales.”
Said McDonald’s Global Chief Marketing Officer Silvia Lagnado: “We are reconsidering all aspects of our business and have made this decision in cooperation with the IOC to focus on different priorities.”