Thread: McDonald's stock hits record high as turnaround takes hold

Thu Oct 22, 2015 8:39pm EDT

McDonald's stock hits record high as turnaround takes hold

BY LISA BAERTLEIN AND YASHASWINI SWAMYNATHAN

McDonald's Corp (MCD.N) shares hit an all-time high on Thursday after Chief Executive Steve Easterbrook said a rebound in quarterly restaurant sales showed that his turnaround plan is starting to work.

Global sales at established restaurants were up a much better-than-expected 4 percent in the third quarter, ending six straight quarters of flat or falling results. And, Easterbrook said, the trend would continue in the current quarter.

Shares of the world's biggest restaurant chain by sales jumped more than 8 percent to a record $110.88 in early trading as a renewed focus on value and service helped business around the world.

"The progress we have made in a short amount of time gives me confidence we're making the right moves to turn around our business and reposition McDonald's as a modern, progressive burger company," Easterbrook said on a conference call with analysts and investors.

The United States, McDonald's No. 1 market for profit, reported a surprise 0.9 percent increase in sales at restaurants open at least 13 months. McDonald's said a new Premium Buttermilk Crispy Chicken Deluxe sandwich and its decision to swap butter for margarine on its Egg McMuffins helped the division break a two-year streak of quarterly sales declines.

China's same-restaurant sales, which had plummeted after a food safety scandal in July 2014, were up a whopping 26.8 percent for the quarter, helped by a focus on value and breakfast.

Australia, the United Kingdom and Canada also contributed to the quarterly rise in sales at restaurants open at least 13 months, after McDonald's tweaked menus, improved service and refined its offering of inexpensive food.

Easterbrook, now eight months into his tenure as CEO, has announced plans to speed up service, simplify menus and boost food quality.

In the United States, he rolled out all-day breakfast, began switching to chicken from birds raised without important antibiotics and raised wages for workers in restaurants run by the corporation.

On Thursday, Easterbrook said winning back customers remains a top priority in the United States, where competition is fierce and speed is key.

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McDonald's U.S. sales finally rise

All-day breakfast, launched Oct. 6, is part of that effort.

While that move appears to have boosted traffic, some domestic franchisees complain that all-day breakfast and the company's plans to customize sandwiches is complicating operations and slowing service.

Easterbrook said restaurant operators have embraced all-day breakfast, and that an early read suggests it is "an incremental profitable business" wooing new and existing customers.

On the other hand, McDonald's said its decision to raise wages and improve benefits for 90,000 workers in U.S. company-operated restaurants took a bite out of operating income.

Third-quarter net income was up 23 percent to $1.31 billion, or $1.40 per share. Revenue fell 5 percent to $6.62 billion.

Chief Financial Officer Kevin Ozan said the strong U.S. dollar would ding fourth-quarter earnings per share by 8 to 10 cents. McDonald's gets about one-third of revenue and more than half of its operating income from outside the United States.

At midday, McDonald's shares were up 7.5 percent to $110.20.

http://www.reuters.com/article/2015/...0SG1FZ20151023

On the other hand, McDonald's said its decision to raise wages and improve benefits for 90,000 workers in U.S. company-operated restaurants took a bite out of operating income.

Third-quarter net income was up 23 percent to $1.31 billion, or $1.40 per share. Revenue fell 5 percent to $6.62 billion.

Explain this to me, if net income after raising wages and benefits was up 23%, how are wages and benefits which are part of expenses, not revenue, cause revenue to fall by 5 percent?

Anyway, congratulations McDonald's, I hope your new game plan and higher wages means you're higher all American Workers.

McDonald's has been using E-VERIFY for years.



E-verify sign in a McDonalds
December 13th, 2010

http://www.examiner.com/article/chip...egal-employees

http://www.alipac.us/f19/mcdonalds-w...0-jobs-222546/
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NUMBERUSA
"Our search engine is very particular, so if you don't find a company, it doesn't necessarily mean they're not using E-Verify. For instance, food distributor FreshPoint is all one word, so they won't come up if you insert a space between the two words. Another common error could come up when searching for franchises. Your local McDonalds is likely owned and operated by a business group that is not located in your city, and they may not have the word 'McDonalds' in their title."

http://www.numbersusa.com/content/nu...-verify-search

http://www.alipac.us/ftopict-233466.html

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Wal-Mart McDonald's

• 1741 E. Florence Blvd.
  Casa Grande, AZ 85122
  
  Effective 01/01/2008 All New Hires Will Be Processed Through The Federal E-Verify System In Accordance With Arizona State Law.
• 
  E-Verify - Wal-Mart McDonald's

Chipotle and McDonald’s crackdown on illegal employees

December 13, 20109:14 AM MST

E-verify sign in McDonalds

File

In an attempt to comply with the U.S. immigration law restaurants across the country are double checking their employee’s paperwork to ensure they are eligible to work in the country.
Chipotle, a Mexican food chain in Minnesota fired approximately 50 Latino employees last week who failed to comply with an I-9 audit and provide adequate documentation showing they could legally work in the United States.

The number of restaurants working in coordination with Immigration and Customs Enforcement (ICE) has increased as the Obama Administration is cracking down on businesses looking to skirt the immigration rules of employees.

However, the decision to fire 50 Latino employees didn’t sit well with Minnesota Immigration Rights Action Committee (MIRAC), who is fighting the restaurants’ decision and claims that Chipotle unfairly targeted the Hispanic workers.

“We started to piece together there was something larger going on than a few people fired at one store,” said MIRAC affiliate Brad Sigal. “It appears to be a statewide attack on immigrant workers who are longtime employees most of them been working there for years.”

Meanwhile the Chipotle restaurant chain was subjected to an I-9 audit in which ICE requests employers to collect paperwork from staff and verify their legal status.

“They check the paperwork and fire anyone who can’t immediately prove they have the right to work. An action like this on a mass scale before the holidays is not consistent with the image they (ICE) have cultivated,” Sigal said.

Chipotle restaurant released a statement that read in part, “We are fully cooperating with Immigration and Customs Enforcement officials in Minnesota in connection with a document request they have made.”

Other restaurants, like McDonalds or Sizzler are also ensuring their employees legal status by requesting documentation for the federal government program E-verify. The program takes only a few minutes to complete and provides employers with the legal status of their prospective employees.

The E-verify program is a free service and has more than a 95 percent accuracy rating. Once businesses complies with the employment check, many are placing the E-verify signs provided by ICE in their business windows like the McDonalds in Sedona, Arizona pictured above.

http://www.examiner.com/article/chip...egal-employees

Now McDonald's supersizes their BURGERS: New thickest-ever patties that are cooked to order are launched in UK restaurants

• Fast-food giant has launched 'Signature Collection' burgers in England
• 28 locations, mostly London and the south, are carrying new menu items
• Thicker burgers will be assembled to order and come in three varieties
• Premium items is designed to win back custom from fancier competitors

By KIERAN CORCORAN FOR MAILONLINE
PUBLISHED: 16:05 EST, 4 November 2015 | UPDATED: 20:51 EST, 4 November 2015

278 View comments

McDonald's has launched a new, thicker breed of burger in an attempt to woo British fast food fans back from fancier rivals.

The chain has already started rolling out the premium-level burger, which is built to order and significantly thicker than the regular slices of meat served in the likes of a Big Mac.

Twenty-eight restaurants, mainly in London and the south of England, started serving the so-called Signature Collection range on Wednesday.



+2
Meaty proposal: McDonald's has launched a range of bigger, thicker burgers to tempt in customers led elsewhere by fancier burger rivals

Fast-food executives hope the higher-quality sandwiches - which come in classic, barbecue and spicy flavours with brioche buns - will help them win back customers who have left them for trendy rivals.

Chains such as Gourmet Burger Kitchen and Byron, as well as U.S. imports Shake Shack and Five Guys, have surged in recent years, leading to fears that fast food stalwarts like McDonald's are being left behind.

According to chefs at the chain, customers have been clamouring for the new burgers, which sell for £4.69 individually or £6.19 with a drink and fries - around £2 more than an equivalent Big Mac meal.



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Reinvigorated: 28 outlets have started selling the burgers, which cost £4.69 individually. The locations are mainly in London and the south

The classic burger is 698 calories, compared to the Big Mac's 508. It has 37g of fat and 47g protein, while the Big Mac has 25g and 26g respectively.

McDonald's staff will cook the burgers continuously, then assemble the ingredients after customers order them - a contrast to regular menu items which are often made entirely in advance.

According to food development director Duncan Cruttenden, customers 'told us they wanted thicker beef patties, high quality ingredients and freshly prepared.'

He said: 'We’ve crafted a range that is a truly exciting permanent addition to our menu - every product has to earn a place on our menu and our customers have told us the Signature Collection has done just that.'








Side-by-side: The Classic signature burger (left) has a significantly larger patty than the Big Mac, which sports two smaller ones

McDonald's said that, because of the thickness, the new burgers may take slightly longer to prepare than traditional menu items. The Signature Collection is set to be rolled out to 400 more restaurants by summer 2016.

WHERE CAN I GET ONE? THE 28 LOCATIONS TRIALLING NEW BURGERS

The signature burger is being launched in a small number of locations first, most of which are in London and the south of England.

The locations, which the company has also plotted on a map, are:

Sleaford
Kettering Stanier Retail Park
Caxton Gibbet
Bedford High Street
Milton Keynes - Midsummer Arcade
Milton Keynes - Kingston Centre Retail Park
Bedford Interchange Retail Park
Royston
Colchester Stadium
Luton Leagrave
Luton George Street
Welwyn Garden City
London Colney
Barnet


North Finchley
Haringey
Walthamstow
Barkingside London
Ruislip
Swiss Cottage
Cambridge Circus - Charing Cross Rd
Cannon Street
Bow
Hayes
Wandsworth Drive Thru
Balham
Woolwich - Church Street Drive Thru
Woolwich Powis Street

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