McDonald’s 3Q14 initiatives
Part of McDonald’s (MCD) initiative is to make improvements in the “Made for You” platform. It was introduced almost a decade ago. It allows McDonald’s to offer more sandwiches to its customers. The platform made changes in the kitchen’s cooking procedures.
In the U.S., McDonald’s worked towards letting customers personalize their orders through the “Create Your Taste” concept. This allows a customer to build anorder based on personal preferences.
Modernization isn’t uncommon among restaurant companies. For example, Brinker International (EAT) introduced a table top device. Chili’s falls under EAT. Burger King (BKW) is also revamping its stores. Dunkin’ Brands (DNKN) has been pushing promotions through its mobile application.
Restaurant stocks can also be found in the Consumer Discretionary Select Sector SPDR Fund (XLY).
The changes are more incremental. It remains to be seen whether it’s the convenience to purchase the food or the food itself impacts McDonald’s same-store sales growth. The company also took steps to change its menu.
In the U.S.
In the U.S., McDonald’s is working to give its restaurants more autonomy. Restaurants will be able to offer locally relevant food to the customers. This could mean that new menu items—like the Clubhouse Burger, Cheddar Bacon, Onion, Mozzarella Sticks, and Chorizo Burrito—would be available at different locations. The items wouldn’t be available at all McDonald’s restaurants.
However, this strategy needs to be executed carefully. It’s important that the strategy doesn’t slow down kitchen operations. Also, McDonald’s doesn’t want customers to leave the restaurant with a negative experience.
To counter this, management stated that it will simplify the menu. It will “highlight customers’ favorites,” that are locally relevant. It will be easier for the kitchen staff to prepare the orders quickly.
In the next part of the series, we’ll discuss McDonald’s revenue.
During the third quarter, McDonald's launched its "Our food. Your questions" campaign. It enables communication between McDonald's and its customers.
Monster Beverage (MNST) stock was down 1.6% as of 2:47 PM EDT on March 20.
Earlier today, the second-largest US automaker by 2018 sales volume, Ford Motor Company (F), revealed its plan to invest $850 million in its Flat Rock assembly plant through 2023.
Mizuho downgraded Yum! Brands (YUM) from “neutral” to “underperform” while keeping its 12-month price unchanged at $84, which represents a fall of 15.4% from its March 19 closing price of $99.20.
According to Verizon, its mobile 5G plans will cost $10 more than its current 4G plans.
As of March 19, Dunkin’ Brands (DNKN) was trading at $71.55, which represents a rise of 3.9% since the announcement of its fourth-quarter earnings on February 7.
Suncor Energy's shareholder returns have grown consistently over the past few years. The company hasn't forgotten its commitment to growth.