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McDonald's (MCD) Boosts Digital Platform With Accenture Tie-up
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To strengthen its digital ecosystem, McDonald's Corporation (MCD - Free Report) recently expanded its collaboration with Accenture plc (ACN - Free Report) to accelerate the adoption of cutting-edge technology and transform customer interactions and staff experiences. The initiative paves a path for the implementation of advanced AI solutions and improved restaurant operations.
The partnership aims to accelerate the integration of advanced technology, including AI solutions, to revolutionize customer interactions and employee experiences within McDonald's restaurants. The initiative emphasizes upskilling McDonald’s employees in digital competencies, supporting the company's quest for increased efficiency. Accenture will facilitate training programs in AI, data and edge computing for McDonald’s global workforce.
Through this partnership, MCD plans to implement automation innovations, aiding managers in resolving issues promptly and simplifying tasks for restaurant staff, resulting in better customer service with fresher, hotter food.
Brian Rice, McDonald’s EVP and Global CIO, emphasized the company’s commitment to leveraging Accenture’s expertise to maximize the potential of cloud and AI solutions while fostering talent within the organization.
Increased Focus on Digitization
The company is focused on digitalization to drive growth. During the third quarter of 2023, MCD reported accelerated digital engagement across the markets. It reported more frequent visits and incremental sales on the back of tailored loyalty messages, a strong lineup of mobile app offers and content offerings.
During the third quarter, digital dales (from the top six markets) came in at $9 billion, contributing more than 40% to the company’s system-wide sales. Given a rise in digital adoption, the company is optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of the company have gained 8.3% compared with the Retail - Restaurants industry’s 6.9% growth. The company is benefiting from robust comparable restaurant sales growth, menu price increases and positive guest counts. Also, its focus on digital initiatives, marketing efforts, campaigns and loyalty programs bodes well.
The effective implementation of the Accelerating the Arches strategy fueled higher customer demand and boosted market share in key regions. This performance underscores the dedication of the entire McDonald's system, which is evident in the global comparable sales rise of 8.8% and consistent segment outcomes, demonstrating the brand's resilience. The brand's authenticity and relevance were evident in third-quarter 2023 through heightened customer engagement.
McDonald’s foresees sustained growth, driven by its ongoing initiatives such as Experience of the Future, digital enhancements and delivery services. With several growth-oriented endeavors in place, the stock shows promising potential for upward movement. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Picks
McDonald's currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector include:
Arcos Dorados Holdings Inc. (ARCO - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 28.3% on average. Shares of ARCO have increased by 53.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 223.6%, on average. Shares of EAT have increased 27.2% in the past year.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS indicates a 5.1% and a 26.2% growth, respectively, from the year-ago period’s levels.
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McDonald's (MCD) Boosts Digital Platform With Accenture Tie-up
To strengthen its digital ecosystem, McDonald's Corporation (MCD - Free Report) recently expanded its collaboration with Accenture plc (ACN - Free Report) to accelerate the adoption of cutting-edge technology and transform customer interactions and staff experiences. The initiative paves a path for the implementation of advanced AI solutions and improved restaurant operations.
The partnership aims to accelerate the integration of advanced technology, including AI solutions, to revolutionize customer interactions and employee experiences within McDonald's restaurants. The initiative emphasizes upskilling McDonald’s employees in digital competencies, supporting the company's quest for increased efficiency. Accenture will facilitate training programs in AI, data and edge computing for McDonald’s global workforce.
Through this partnership, MCD plans to implement automation innovations, aiding managers in resolving issues promptly and simplifying tasks for restaurant staff, resulting in better customer service with fresher, hotter food.
Brian Rice, McDonald’s EVP and Global CIO, emphasized the company’s commitment to leveraging Accenture’s expertise to maximize the potential of cloud and AI solutions while fostering talent within the organization.
Increased Focus on Digitization
The company is focused on digitalization to drive growth. During the third quarter of 2023, MCD reported accelerated digital engagement across the markets. It reported more frequent visits and incremental sales on the back of tailored loyalty messages, a strong lineup of mobile app offers and content offerings.
During the third quarter, digital dales (from the top six markets) came in at $9 billion, contributing more than 40% to the company’s system-wide sales. Given a rise in digital adoption, the company is optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of the company have gained 8.3% compared with the Retail - Restaurants industry’s 6.9% growth. The company is benefiting from robust comparable restaurant sales growth, menu price increases and positive guest counts. Also, its focus on digital initiatives, marketing efforts, campaigns and loyalty programs bodes well.
The effective implementation of the Accelerating the Arches strategy fueled higher customer demand and boosted market share in key regions. This performance underscores the dedication of the entire McDonald's system, which is evident in the global comparable sales rise of 8.8% and consistent segment outcomes, demonstrating the brand's resilience. The brand's authenticity and relevance were evident in third-quarter 2023 through heightened customer engagement.
McDonald’s foresees sustained growth, driven by its ongoing initiatives such as Experience of the Future, digital enhancements and delivery services. With several growth-oriented endeavors in place, the stock shows promising potential for upward movement. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Picks
McDonald's currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector include:
Arcos Dorados Holdings Inc. (ARCO - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 28.3% on average. Shares of ARCO have increased by 53.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 223.6%, on average. Shares of EAT have increased 27.2% in the past year.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS indicates a 5.1% and a 26.2% growth, respectively, from the year-ago period’s levels.