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McDonald's (MCD) to Shell Out $6B to Revamp U.S. Outlets
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McDonald's Corporation (MCD - Free Report) has announced that the company, along with its franchises, is undertaking an initiative to modernize most restaurants in the United States by 2020. To this end, it is investing roughly $6 billion for the construction of its revamped outlets.
McDonald’s will renovate restaurants in Wisconsin; Michigan; Oklahoma; Illinois; Texas; New York; Georgia; Ohio; Florida; North Carolina; Pennsylvania; Washington, DC; Massachusetts; Virginia; Maryland and Indiana.
The transformed restaurants will have a modernized interior décor, with digital self-order kiosks. It will also feature digital menu boards and designated parking spots for curbside pick-up through mobile order, and pay. For further customer convenience, the refurnished restaurants will have expanded McCafé counters and larger display cases.
Along with the investment, the company has also started its delivery service, McDelivery with Uber Eats, at 5,000 U.S. restaurants.
Enhancing Customer Satisfaction Acts as Major Growth Strategy
The move underscores McDonald’s consistent effort to drive comps through increased consumer satisfaction. To this end, the company is continuously undertaking initiatives like introducing value meals, customizing the menu as per local customers’ taste, reimaging of restaurants, efficient marketing and promotions, improved service, and increased convenience via delivery. With the roll-out of self-order kiosks, digital menu boards, table service, and the mobile app, customers are offered more choices and flexibility as the company progresses toward its Experience of the Future initiative, which is based on adding technology to its eateries.
McDonald’s believes the converted restaurants to witness stronger financial results while changes in the layout of restaurant dining rooms and service areas are likely to create better customer flow. It is also expected to improve McCafé and dessert business.
Initiatives Drive Outperformance
Growing guest count remains McDonald’s top priority and it intends to regain customers by focusing on food quality, convenience and value. Moreover, McDonald’s expects its velocity accelerators of Experience of the Future, digital and delivery to drive growth over the long term. Given various initiatives undertaken to drive growth, the stock has a decent upside potential. Driven by the company’s efforts to enhance customer experience and thereby sales, McDonald’s shares have gained 33.4% in the past two years, outperforming the industry’s collective growth of 10%.
Zacks Rank & Stocks to Consider
McDonald’s currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the restaurant space are BJ’s Restaurants (BJRI - Free Report) , Carrols Restaurant (TAST - Free Report) and Darden (DRI - Free Report) . While BJ’s Restaurants sports a Zacks Rank #1 (Strong Buy), Carrols and Darden carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Restaurants, Carrols and Darden’s earnings for 2018 are projected to increase 50.4%, 80% and 14.4%, respectively.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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McDonald's (MCD) to Shell Out $6B to Revamp U.S. Outlets
McDonald's Corporation (MCD - Free Report) has announced that the company, along with its franchises, is undertaking an initiative to modernize most restaurants in the United States by 2020. To this end, it is investing roughly $6 billion for the construction of its revamped outlets.
McDonald’s will renovate restaurants in Wisconsin; Michigan; Oklahoma; Illinois; Texas; New York; Georgia; Ohio; Florida; North Carolina; Pennsylvania; Washington, DC; Massachusetts; Virginia; Maryland and Indiana.
The transformed restaurants will have a modernized interior décor, with digital self-order kiosks. It will also feature digital menu boards and designated parking spots for curbside pick-up through mobile order, and pay. For further customer convenience, the refurnished restaurants will have expanded McCafé counters and larger display cases.
Along with the investment, the company has also started its delivery service, McDelivery with Uber Eats, at 5,000 U.S. restaurants.
Enhancing Customer Satisfaction Acts as Major Growth Strategy
The move underscores McDonald’s consistent effort to drive comps through increased consumer satisfaction. To this end, the company is continuously undertaking initiatives like introducing value meals, customizing the menu as per local customers’ taste, reimaging of restaurants, efficient marketing and promotions, improved service, and increased convenience via delivery. With the roll-out of self-order kiosks, digital menu boards, table service, and the mobile app, customers are offered more choices and flexibility as the company progresses toward its Experience of the Future initiative, which is based on adding technology to its eateries.
McDonald’s believes the converted restaurants to witness stronger financial results while changes in the layout of restaurant dining rooms and service areas are likely to create better customer flow. It is also expected to improve McCafé and dessert business.
Initiatives Drive Outperformance
Growing guest count remains McDonald’s top priority and it intends to regain customers by focusing on food quality, convenience and value. Moreover, McDonald’s expects its velocity accelerators of Experience of the Future, digital and delivery to drive growth over the long term. Given various initiatives undertaken to drive growth, the stock has a decent upside potential. Driven by the company’s efforts to enhance customer experience and thereby sales, McDonald’s shares have gained 33.4% in the past two years, outperforming the industry’s collective growth of 10%.
Zacks Rank & Stocks to Consider
McDonald’s currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the restaurant space are BJ’s Restaurants (BJRI - Free Report) , Carrols Restaurant (TAST - Free Report) and Darden (DRI - Free Report) . While BJ’s Restaurants sports a Zacks Rank #1 (Strong Buy), Carrols and Darden carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Restaurants, Carrols and Darden’s earnings for 2018 are projected to increase 50.4%, 80% and 14.4%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>