McDonald’s to boost restaurant growth, streamlining some programs According to Reuters
© Reuters. A McDonald’s restaurant is referred to as McDonald’s Corp. reports fourth quarter earnings, in Arlington, Virginia, USA, January 27, 2022. REUTERS/Joshua Roberts
By Hilary Russ
NEW YORK (Reuters) – Burger chain McDonald’s Corp (NYSE:NYSE) said on Friday that it will review the company’s employee levels and aim to build more restaurants as part of it. of the updated business strategy.
The new plan, announced in a letter from CEO Chris Kempczinski to global employees and seen by Reuters, calls on the Chicago-based company to cancel or “not prioritize” some initiatives. at the same time speeding up the store development process.
That could lead to layoffs in some areas and expansion in others, the company said.
“We will review our strategy and values to guide how we reach those decisions and support every impacted member of the company,” the letter read, adding that McDonald’s will begin announcing key decisions by April 3.
McDonald’s beat revenue and profit estimates in its last quarterly earnings results in October, thanks to higher menu prices and increased store visits from inflation-weary customers. looking for value meals. Its global same-store sales rose 9.5% in the third quarter.
Like other fast-food chains, McDonald’s has raised menu prices to keep up with rising commodity and labor prices.
McDonald’s high sales and profits also mean it – like a number of other restaurant chains including Starbucks Corporation (NASDAQ:) and Chipotle Mexican Grill Inc (NYSE:) – could embark on major expansion plans. McDonald’s does not provide the number of new stores the company wants to build.
It also now plans to streamline technology – including loyalty programs – and develop menus to bring new products to use globally faster.
Kempczinski has also promoted several executives and created a new director of transformation role, his letter said.