On Wednesday, the Chief Executive Officer of McDonald’s Corporation (NYSE:MCD), Steve Easterbrook announced that the probability of success for his plan to save the company pegged on various factors. One of them is the duration taken to toast the buns used to make the burgers.
With that in mind, shareholders will be subjected to more waiting as the company makes the decision to stop making monthly sales data reports. Investors will now receive the reports on a quarterly basis. The decision leaves investors in a pickle as they will not be able to access the minor news that set the stock performance stones rolling.
The fast food giant has been under close watch by analysts and investors, following its continued poor performance both in the stock market and in terms of sales. It is clear that Easterbrook and his team have identified that what the slightest of news from the company’s kitchens and diners have a significant influence on stock performance. Thus the decision to reduce the number of times the investors are exposed.
Investors usually react to the slightest news and thus end up forming assumptions. These assumptions force them to take actions to either buy or sell, thus creating volatility in the whole situation. One of Eaterbrook’s plans to turn the company around from its hard times is to cover these volatility loopholes.
In matters regarding the kitchens, the company’s Chief Administrative Officer, Pete Bensen announced that the decision to reduce the roast time for the burger buns will speed up the service. More efforts to improve service provision will be included such as the addition of more drive through lanes in most of the company’s restaurant locations.
Mcdonald’s Corporation (NYSE:MCD)’s has been struggling especially in the American market especially due to the changing consumer preferences. Easterbrook’s strategy might also involve selling some of the company-owned restaurants to its franchises, and restructuring the management.
Despite the fact that McDonald’s has received constant pressure to change its menu to more healthy foods, the company seems to want to maintain the same menu. The company will only make minor changes to improve the quality of the foods.