"When I was a teenager, it was much more acceptable within my peer level to eat here," said Mr. Ibrahim, a 26-year-old architectural draftsman, as he sat in a McDonald's near the Mission District in San Francisco. "But now, it comes off as uncultured, unclassy and uncool. Nobody brags about going to McDonald's, that's for sure." He added: "If you want to be chic, you eat sushi. Indian food is even more cutting edge. McDonald's is like white bread."

Since 1997, McDonald's share of the fast food market has fallen more than 3 percent, according to Technomic, a market research firm. (McDonald's now accounts for 15.2 percent of the market.) Subway, which offers custom-made sandwiches on freshly baked bread, has supplanted McDonald's as the largest chain in the United States. Among hamburger chains, McDonald's has lost the lunchtime battle to Wendy's, which first offered an alternative menu featuring baked potatoes and a salad bar. Sales of the popular Happy Meals have slid, in part because the company's 10-year licensing deal with the Walt Disney Company has not been able to capitalize on toys from any blockbuster movies since "Toy Story 2." And, while owning a McDonald's was once a sure-fire moneymaker, many of the company's franchisees have voiced disappointment with lower profits, expensive new cooking systems and strained relations with management.

The company's image problems are starting to affect its bottom line. Last December, under pressure from Wall Street and investors, McDonald's chief executive said he would step down at the end of the year. He was replaced in January by James R. Cantalupo, a 28-year veteran of the company who was brought out of retirement to assume the post. The company also announced plans to close 600 restaurants and to shut its operations in three countries. In January, McDonald's recorded its first quarterly loss in the company's history as a publicly traded business.

So along with the entire hamburger category, the company has been losing market share to what the food industry calls the fast-casual restaurants like Panera Bread, Baja Fresh, Pret A Manger and Chipotle Grill (McDonald's has an ownership stake in the last two) that have successfully domesticated exotic tastes for the mass audience.

McDonald's has been experimenting with new foods like a salad topped with hot slices of grilled or crispy chicken that is scheduled to go on sale nationally in March. Customers will be able to eat a griddle cake sausage sandwich, called McGriddles, in the spring and will soon be able to petition an in-house barista for a cup of premium ground coffee and pastries, a concept the company calls McCafe. McDonald's has promised an expanded menu before, but it has not had a blockbuster new product since the Chicken McNugget, which was introduced in 1983. Other attempts to diversify their hamburger offerings, like the McLean sandwich and the Arch Deluxe, have all gone to their respective McGraves. A 1991 cover of BusinessWeek magazine featured a photograph of Michael R. Quinlan, a former McDonald's chief executive, surrounded by 10 new menu items, including spaghetti, lasagna, pizza and carrot sticks. Of those 10 products, only 2 remain on McDonald's menu.