Here's what McDonald's plans to do to win back 500 million lost customer visits

[corbe]

Here's what McDonald's plans to do to win back 500 million lost customer visits

Sarah Whitten   | @sarahwhit10
4 Hours Ago
CNBC.com

McDonald's has a traffic problem and its executives know it. Now they have a plan they think will turn it around.

The company lost more than 500 million customer visits to close competitors since 2012, Chris Kempczinski, McDonald's USA President told investors gathered in Chicago Wednesday.

To win them back, the company plans to make $1.7 billion of capital expenditures this year, as it continues some efforts already underway and takes some new steps.

The burger giant has been working hard to revamp its menu and improve its customer experience and those efforts will not be slowing down, according to CEO Steve Easterbrook.

"Through enhanced technology to elevate and modernize the customer experience, a focus on the quality and value of our food and redefined convenience through delivery, we have a bold vision for the future and the urgency to act on it," said Easterbrook. "We are moving with velocity to drive profitable growth and becoming an even better McDonald's serving more customers delicious food each day around the world."

McDonald's said it is on track to refranchise 4,000 restaurants by the end of this year — a full year ahead of schedule. That will bring its global franchised percentage to about 93 percent.

The company also said it squeezed out more than $200 million in savings by the end of last year, making progress towards its goal of reducing net general and administrative costs by $500 million by the end of 2018. McDonald's expects to trim another 5 percent to 10 percent from its remaining cost base by the end of 2019.

The company is slated to return between $22 billion and $24 billion to shareholders in the three-year period up until 2019. That is higher than analysts' expectations of $18 billion to $22 billion.

Other expectations for 2019 and beyond include:

•Systemwide sales growth of 3 percent to 5 percent;

•Grow operating margin from the high-20 percent range to the mid-40 percent range;

•Earnings per share growth in the high-single digits; and

•Raise the return on incremental invested capital target from the high-teens to the mid-20 percent range.

In the near term, McDonald's focus is on four pillars: menu innovation, store renovations, digital ordering and delivery.

Kempczinski disclosed that McDonald's test of its "Signature Sandwiches" — customizable and more upscale burgers and chicken sandwiches — will roll out later this year and investors can expect the company to step up its menu innovations in the U.S.

The chain's stores will also be getting an update. McDonald's is committed to becoming a "modern and progressive burger company," and will be adding self-service ordering kiosks and table service to some of its stores.

McDonald's "experience of the future" is coming to about 650 restaurants this year, bringing the chain's number of these stores to nearly 2,500.

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http://www.cnbc.com/2017/03/01/mcdonalds-shares-halted-ahead-of-investor-presentation.html

[corbe]

                  Convince this one and your half way there.

[mountaineer]

She's penniless, isn't she? Too bad McD's is going with kiosks, or I'd suggest she put in an application.

[corbe]

   Apparently 'Dolezal' was to White.



Rachel Dolezal changes her name to African phrase that means ‘gift of God’
NEW YORK DAILY NEWS
Wednesday, March 1, 2017, 6:11 PM


Rachel Dolezal legally changed her name in October to reflect the heritage she claims she identifies with.

The 39-year-old white former NAACP leader filed to change her name to Nkechi Amare Diallo, according to court documents in Spokane, Washington.

Nkechi, short for Nkechinyere, comes from the Igbo word for “what God has given” or “gift of God” in Nigeria.

Diallo, which has African origins, means “bold.”


http://www.nydailynews.com/news/national/rachel-dolezal-african-phrase-article-1.2986238

[Norm Lenhart]

They could go back to their original business model and clean up. As long as they continue to sell overpriced plastic food, they will keep losing customers.

[Wingnut]

Micky D's is circling the drain. They are old and tired.  If their moron CEO Easterbrook thinks this dipstick Kempczinski...a Kraft Foods reject who prior to that was a Pepsico reject... can float the ship, well then he is dumber than he looks.

[GtHawk]

They could go back to their original business model and clean up. As long as they continue to sell overpriced plastic food, they will keep losing customers.

I have been saying that for decades, I got in trouble in a multi-operator managers meeting in the early 90's for saying exactly that. We were already padding the menu back then and they wanted us to go survey customers while they were eating and the cashiers to chat with the customers while they were taking their orders. The man I worked for was on the dais with a half dozen operators and a few corporate people, I saw him visibly cringe when a corporate rep asked me my opinion. I told him that I didn't think people wanted to be interrupted while eating to answer a bunch of questions, that they wanted to come in and order and eat in peace, that it was ridiculous  to demand our our employees give 30 second D.T. and 60 second counter service while chatting up the customers and......then my employer told to sit down and let someone else talk before I got to my opinion of the bloated menu.

Things really went down hill after that as far as quality and operations, well let's just the operator and I had less than a quality relationship afterwards.

[geronl]

the future?

McDonalds has been doing delivery in other countries for years.

[Frank Cannon]

The chain's stores will also be getting an update. McDonald's is committed to becoming a "modern and progressive burger company," and will be adding self-service ordering kiosks and table service to some of its stores.

Are they for real? I don't want a waiter at McD's. I want the old beef tallow and cottons seed oil french fries and meat that looks like meat again. You cannot gloss over shitty quality with a self service kiosk.

[Applewood]

I once owned McDonalds stock and it was very profitable.  At the time, the company was expanding overseas where the concept of fast food was a novelty and every restaurant was packed to the rafters.  Unfortunately, that was about the time when McDonalds' operations in the US started going downhill.  Oh, they tried to cater to the healthy eaters, but in the process the Big Mac and other less healthy staples went all to hell. Then of course, they made a push for "diversity" -- hiring more managers and employees of a certain race without regard to competency and willingness to work.  Service began to suck.

I sold my McDonalds stock before the company really went downhill -- while McDonalds was still making money overseas.  These days, I think the novelty of McDonalds has worn off in other countries,  so the foreign markets no longer prop up the company. 

I wish McDonalds well and hope it can bounce back.  Too bad the company has upper management with no clue as to what customers really want.

[Gefn]

Their salads are nice as their coffee. So is the filet of fish sandwich.

I use to love their McDLT burger.

In the last few years I just go in there for a bottled water when I'm driving and a salad. I can't eat fried food anymore, so most of their menu is non edible to me.

The local one near me has a big ball pit, free wifi and lots of parents drop the kids off, get a beverage and watch the kids play there. They also do a lot of birthday parties. It is a very big ball pit.

[Polly Ticks]

All-day breakfast has prompted my teenagers go there quite a bit more than they used to do.

[mountaineer]

the future?

McDonalds has been doing delivery in other countries for years.

The prices generally are quite high in other countries, but I've always enjoyed visiting McD's while traveling in Europe, especially when I just want an American-style cup of coffee. They had  a nice Starbucks-style pastry and coffee section in a French one we visited, and some interesting menu items (the Mc'Croque was the cheapest item on the menu, a fast food take on the croque monsieur). I like that they usually have beer on the menu in Euro McD's, too. 

[goatprairie]

They're mostly selling on their name now.....McDonald's is considered the prime name in fast food. If they changed it to McDuff's or Fred's, many current patrons would not go there.
There are numerous ff restaurants now that serve better burgers than MDs....burgers and fries are what they built their rep on.
 Culvers, Five Guys, and even Hardee's have better burgers and/or fries.   Many people are more than willing to pay the little extra money to get better quality.   I still like Chicken McNuggets and fries every now and then, and their fish sandwiches are ok..... but that's about every four or five months at best.

[GtHawk]

All-day breakfast has prompted my teenagers go there quite a bit more than they used to do.

Breakfast is the one thing not totally screwed up with the just in time nonsense, the individual foods fare better in the holding cabinets than the lunch and dinner product does.

[geronl]

  These days, I think the novelty of McDonalds has worn off in other countries,  so the foreign markets no longer prop up the company. 

When it's next to a Burger King, a Dunkin Donuts, a Subway and other well-known places, it ceases being unique.

[geronl]

All-day breakfast has prompted my teenagers go there quite a bit more than they used to do.

People were begging for that for at least a decade, they missed out on a lot of profits.

[dfwgator]

How about stop trying to market to the ghetto crowd.

[DCPatriot]

How about stop trying to market to the ghetto crowd.

Exactly.....for the past year or so, their advertising mirrors that of Colt 45 Malt Liquor.

Just melt the freaking cheese!

[Wingnut]

How about stop trying to market to the ghetto crowd.

The Mc'D patrons fights posted on YouTube are so entertaining.

[Norm Lenhart]

The Mc'D patrons fights posted on YouTube are so entertaining.

Mickey D's...Chuck E. Cheese... I'm noticing a pattern here. Both followed a similar strategy: Both went Urban/ghetto, Both got fame for Youtube fights and Both shed customers like snakes moulting because few people dine out for the free violence.

[Cyber Liberty]

FTA:

The company also said it squeezed out more than $200 million in savings by the end of last year, making progress towards its goal of reducing net general and administrative costs by $500 million by the end of 2018. McDonald's expects to trim another 5 percent to 10 percent from its remaining cost base by the end of 2019.

When a business places "cost cutting" so prominently in it's stated goals, that company is swirling the drain.

[Cyber Liberty]

How about stop trying to market to the ghetto crowd.

Their commercials are very, very heavily targeted to the urban crowd.  I don't get it, that demographic has done more harm to their image than anything else they've done.

[Wingnut]

FTA:





When a business places "cost cutting" so prominently in it's stated goals, that company is swirling the drain.

It's like the Car dealership that Loses money on every car they sell but they make it up in volume.

[ABX]

Simple, make better food. Their stuff tastes like school cafeteria food. Their competitors are walking circles around them when it comes to quality.