McDonald’s is restructured to try to improve sales – Digital Journal Juarez

New York- US fast food giant McDonald’s said yesterday it will reorganize its international operations and will more local franchises, in an attempt to reverse the persistent decline in sales.

The manufacturer the famous “Big Mac” will sell franchises 2018 3000 500 additional restaurants currently managed by the company. This will take the number of restaurants operated by franchisees of 81% today to about 90%.

With this step, the company is in line with his great rival Burger King, which directly manages only 1% of its 7000 300 restaurants in the United States and Canada.

McDonald’s, under pressure from its competitors and markets, with these changes expected to achieve savings of $ 300 million annually by 2017.

The world’s number one fast food also wants to reassure markets about its ability to be revived in a context of erosion of sales: said it will distribute between 8000 and nine billion dollars to its shareholders this year.

also reaffirmed its intention to dump a total of 18000-20000000000 dollars to its shareholders by the end of 2016.

Under fire in various countries for health reasons or aggressive competition, McDonald’s decided to simplify its structure and reorganize its activities into four segments.

The first relates to the United States, which accounted for over 40% of its operating profit in 2014 and which lost market shares to chain Mexican food as Chipotle, Wendy’s or Taco Bell, which have adapted to changing consumer tastes.

Australia, Canada, France, Germany and the UK, accounting for another 40%, were grouped in the segment “international market leaders.”

China, Italy, Poland, Russia, South Korea, Spain, Switzerland and the Netherlands, with 10% of operating profit, were among the markets with strong growth. The rest will be in the market segment base.

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