Wednesday, November 11, 2015

What McDonald's Plans To Announce On Investors Day


The fast food company has its investor day scheduled to take place soon which will decide the way investors think about the stock of the giant for the next annual fiscal period

McDonald’s Corporation is all set for its Investors Day and is expected to report some new plans to the investors that will satisfy them for the next fiscal period. Presently, the giant seems to be enjoying a great share price on the index, which is majorly due to the turnaround plan being followed by the food company since the past couple of months. 
However, the circumstances that the giant has been experiencing some struggling sales cannot be denied. The main reason for such a deliberate growth in the sales is mainly due to the excessive pressure coming in from other rivals in the food industry such as Shake Shack and Chipotle. These food companies seem to be working just fine in the market by offering healthy food choices to the customers in a much better way as compared to one of the oldest fast food chains in the country.

The past few quarters have indeed been a struggle for the McDonald’s stock but in October, the food company displayed some immense progresses in the industry which was mainly because of the all-day breakfast program which was recently announced to take place by the restaurants. The year over year success rate has come around to be at 20%, with a share price of $113.26 which is like a ray of sunshine on a dark day for the company, given the fact that it has been struggling for so long to maintain an average position in the market.

McDonald’s business has been going through some tough times followed by some major deviations in the way things were planned within the food giant. The investors, however, are still looking for some major improvement plans to look forward to and expect the company to announce some new programs on the Investor Day. It is expected that the giant will talk about re-franchising, which it has been thinking about for quite some time now. The fast food chain has already reported that it will be refranchising around 1,500 outlets by current year and to have done the same to around 3,500 restaurants by the next three years.

On the other hand,McDonald’s investors have been seen advising the giant on multiple platforms to think about starting its own real estate investment trust, which is one of the factors that are most likely to be discussed during investor meeting to be held on Tuesday. The food company is also expected to speak of the way things have been carried out after the all-day breakfast plan and where the giant should go from there.

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