Under the leadership of CEO Steve Easterbrook, the world's largest fast-food chain treads on the path to growth
McDonald’s Corporation announced its intention of opening up 150 new outlets in China. The clients will need to be able to customize the burgers according to their taste. Dubbed under “Create-Your-Taste,” this offer has a great selection of ingredients for the customers to make their burgers from. The concept had been initially introduced in U.S. and after receiving the positive feedback from satisfied customers, the fast-food giant intends to introduce it across the world too.
The largest fast-food restaurant already has 11 such outlets in Beijing, Shenzhen, Guangzhou, and Shanghai. McDonalds senior Communication Director, Regina Hui, plans to extend the outlets in mainland China. In the fourth and last quarter, the company was able to increase its same-store sales from China by 4%. The most popular fast-food brand also declared better than expected revenue from U.S.
Reuters reported Ms. Hui that the restaurant has received overwhelming response from its already running outlets. This opens the possible potential for the U.S. based restaurant to have growth in China where it had witnessed slumping sales after the food safety scandal. But the world’s famous fast-food chain bounced back in its last two quarters and the future is likely to boost company’s profits and revenues. This initiative is also fruitful to gain the trust and confidence of the customers who are conscious about their health.
Earlier in 2015, McDonald’s gets a new leadership, the current CEO Steve Easterbrook joined the organization and vowed to bring it back on track. Frankly, the leadership proved beneficial for the fast-food titan and it immediately started showing the signs of improvement.
China is the essential market for the organization. Yum Brand Inc.’s subsidiaries Pizza Hut and KFC have 1,572 and 4,563 outlets respectively. McDonald’s has more than 2,000 outlets in the country. The health conscious consumers in China have become picky while choosing their preferred meal. Therefore, through this initiative, the $112 billion organization gives the option to the customers to pick the ingredients for their meals on their own.
One of the Easterbrook’s strategies for the turnaround is to provide simpler menus for the customers and the charismatic leader looks forward to having favorable results from this new step. His turnaround plan also includes improving the timing of the service and improving the wages of the workers. With new strategies the company is set to touch its once claimed image of the fast-food behemoth. At the market which closed on Friday, McDonald’s Corporation stock price stood at a strong $123.72. The 52 week price range stock is estimated at $87-$124.
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