The McDonald’s Lucky Bag
This bag contains 5 items and it comes in a reusable form, this time featuring the famous French fries from McDonald’s. You’ll find the following items in this lucky bag:
• Coupon for 1 free French fries
• Coupon for 1 free hamburger
• 1set of paper bookmarks
• McDonald’s tumbler
• Big Mac stuffed toy
McDonald’s to Open Robot-Run Outlets in 2016
After experiencing a decline in profits for the first time during its previous 9 years of operation and battling workers demanding for $15/hr, this fast food chain is cooking something that no other restaurant has done before. Thousands of stores will be opened by 2016 and they’ll be run entirely by robots.
These 25,000 stores will be finished throughout the US by the end of the year 2015. Each restaurant will be employing a small team of humans to insure all robots are working correctly. This small group of employees will also see to it that the supplies remain stocked and remove the cash that was collected by the robots.
Customers will see these robots work in harmony at a rapid speed of 50 times quicker than an average human employee, and the best thing is with no error. If the launching for the stores would be a success, people will soon expect to see these robots working in every McDonald’s location all over the country as well as at restaurants around the globe.
Paul Horner, McDonald’s spokesman told CNN news that the robot project was enforced due to the employees’ demand for a $15/hr minimum wage. Management has been thinking about putting up restaurants run by robots and believes this is the answer.
“The McRobots ideas are certainly great. These robots will be done with their works in an orderly and fast manner. In addition, they wouldn’t ask for cigarette breaks,” says Horner. Due to the increasing clamour for a $15/hr minimum wage and protests getting even worse on a daily basis, this is one project that the company has to implement.
With the tremendous percentage of human error, lack of education, poor hygiene, laziness, and the recent developments in artificial intelligence, it would only make sense for any company to automate its fast food chains now rather than later.
Shareholders can expect their stocks to be on the rise again since employee salaries will not only be cut, but totally eliminated. By not having employees, McDonald’s is projecting to have a full financial spin and see their stock go back to $105/share.
In the United States alone, the first quarter sales decreased by 2.6% as products and promotional offers failed to meet expectations. The operating income for this quarter declined by 11%, reflecting a weak ROI as well as the impact of restaurant and restructuring closing charges.
Horner said he’s excited to be paving the way to an automated workforce, a more affordable and reliable one. These McRobots are seen as the future of McDonalds both in the US and around the world. “Human employees will want more pay, creating giant protests that need immediate attention before it’s too late.
Employing robots would decrease prices, make better food and increase productivity. Hopefully, McDonald’s first robot restaurant in Phoenix will be totally embraced by customers. This will put a stop to negative feedbacks we’ve been receiving from critics out there,” avers Horner.
However, it’s still not clear what these robots look like and how clients will complete their transactions. This sensitive information is still being kept confidential. Soon, these queries will be answered.
Another important question remains unanswered. Will this be the wrong or right decision for this fast food tycoon? In the end, everything will all come down to what’s best for the customers and the shareholders. Of course, those workers who are still hoping to earn $15/hour won’t even matter anymore.
Unveiling McDonald’s Plans for 2016
During its investor meeting, Steve Easterbrook, McDonald’s CEO made an announcement that the fast food chain is looking forward to re-franchising 4,000 of its restaurants. In addition, the company wouldn’t be pursuing its real estate investment, REIT or trust structure. Ahead of this announcement, McDonald’s shares were stopped for trading purposes.
Trading was resumed and the stock went up by 1.1 percent. As for the financial update, Easterbrook stated that the company’s board has authorized a 5 percent increase in quarterly dividends. Steve Easterbrook added that the company is planning to give back $30 billion to its shareholders as dividends for 3 years, ending 2016.
The move means a $10 B increase from McDonald’s previous capital-return target. Easterbrook said that McDonald’s would be funding most of the increase with loans. For the 3-year period which ended in 2013, this company was able to $16.4 billion to its shareholders.
By 2016, this company is expecting same-store sales to increase from 3 to 5 percent and its operating income to increase from 5 to 7 percent. Total capital expenditures are expected to increase by up to $2 billion.