May 4 (Reuters) – McDonald’s new chief executive’s
turnaround plan for the fast-food chain included specific
financial fixes, but left investors and analysts craving a clear
strategy to win back diners and boost sales.
Steve Easterbrook, CEO of the Golden Arches since just March
1, said on Monday McDonald’s Corp would restructure into
four operating divisions, squeeze out about $300 million in
annual cost savings and sell 3,500 restaurants to franchisees.
By Lisa Baertlein
(Reuters) – McDonald’s Corp’s (MCD.N: Quote, Profile, Research) new chief executive officer said on Monday he would reorganize business units, sell restaurants to franchisees and cut costs in a bid to turn the fast-food chain into a “modern, progressive burger company.”
The anticipated video announcement by CEO Steve Easterbrook left investors hungry for specific details on how the world’s biggest restaurant chain would try to improve consumer perceptions of food quality and slow service.
(Reuters) – McDonald’s Corp’s (MCD.N: Quote, Profile, Research, Stock Buzz) new chief executive officer on Monday laid out a turnaround plan that includes reorganizing the company’s operating units, selling more restaurants to franchisees and cutting costs.
Investors gave it a cool reception, sending shares down 1.4 percent to $96.45 in premarket trading.
LOS ANGELES (Reuters) – McDonald’s new Chief Executive Steve Easterbrook is set to unveil his plan on Monday to revive growth as the world’s largest hamburger chain struggles to win back consumers and investors.
He’ll be aiming to persuade people such as Janna Sampson, co-chief investment officer at OakBrook Investments, which bought McDonald’s (MCD.N: Quote, Profile, Research, Stock Buzz) shares on the cheap more than a decade ago and eventually held more than 7 million shares as the company spiffed up its restaurants, improved service and expanded its menus with things like fancy coffee, salads and wrap sandwiches.
LOS ANGELES (Reuters) – McDonald’s Corp (MCD.N: Quote, Profile, Research, Stock Buzz), working to revive sales in an era of mounting fast-food competition, is testing “TasteCrafted,” a more modest version of a new custom sandwich program that will cost franchisees less to install and can be offered through drive-thru windows, an analyst said on Wednesday.
Word of the test, apparently a tweaked version of the McDonald’s “Create Your Taste” customization project, lands just before new Chief Executive Steve Easterbrook is scheduled to unveil his corporate turnaround plan on May 4.
April 27 (Reuters) – Chipotle Mexican Grill Inc on
Monday said the 46 ingredients used in its roughly 1,800
restaurants were now free of genetically modified organisms,
becoming the first major U.S. restaurant chain to make that
U.S. diners, particularly those in the sought-after young
millennial generation, are seeking fresh foods that are less
processed and more natural or organic. Part of that trend
includes GMO-free foods.
April 23 (Reuters) – Starbucks Corp said on
Thursday sales at its coffee shops in the Americas region grew
more than expected, calming concerns about cooling growth and
sending shares up 4 percent in after-hours trading.
Sales at Starbucks shops open at least 13 months were up 7
percent in the Americas region for the fiscal second quarter
that ended March 29. Analysts polled by Consensus Metrix
expected a rise of 5.1 percent.
LOS ANGELES (Reuters) – As McDonald’s Corp prepares yet another plan to revive its business, company watchers have the following advice: reconnect with lower income consumers who remain faithful to the brand, improve wages and ease the financial burden on operators.
Steve Easterbrook, the company’s new chief executive, on May 4 will announce his plan to reinvent McDonald’s as a “modern, progressive burger company” that is more responsive to global diners’ increasing demand for fresh, less processed and more customized food.
By Lisa Baertlein and Shailaja Sharma
(Reuters) – McDonald’s Corp’s (MCD.N: Quote, Profile, Research, Stock Buzz) new chief executive officer, who is charged with reinvigorating world’s biggest restaurant chain, on Wednesday said he would deliver his turnaround plan next month.
In his first quarterly conference call with investors and analysts, CEO Steve Easterbrook described himself as a “champion of simplicity” who values personal accountability and “progress over perfection.” He took the helm on March 1 following one of McDonald’s most dismal years on record.
(Reuters) – Yum Brands Inc (YUM.N: Quote, Profile, Research, Stock Buzz), owner of the KFC, Taco Bell and Pizza Hut restaurant brands, on Wednesday said it expects another tough quarter before a recovery in China, its No. 1 revenue and profit driver, bolsters results in the second half.
Foreign currency and higher taxes promise to bite Yum’s business more than last year, but executives said things should get better in the third and fourth quarters when results from its China division will be compared with figures hit by a sales swoon resulting from a mid-year food quality scare.