McDonald’s has been making up for losses seen last year since the beginning of this year. The declines were ultimately the result of the fact that the company has lost quite a few clients in the past. However, for more than a year now, the company has been working to win back its customers. While these attempts to win customers back had to do with the menu items and customer service in the past, McDonald’s is making an unprecedented move this time around. Below, we’ll talk about what the company is working on to win its customers back this time, why this is so important for the stock, and what binary options traders should be watching for ahead.
McDonald’s Will Be Helping To Pay For Franchise Upgrades
McDonald’s announced recently that its stores are going to undergo some serious upgrades. So serious in fact that it will cost between $150,000 and $700,000 per location to complete the upgrades. The truth is that upgrades in McDonald’s restaurants are nothing new. We see them all the time, and in the past, franchise owners have filed complaints about the fact that required upgrades and the cost of these consistent upgrades are putting them out of business.
However, this time around, McDonald’s will be footing a good portion of the bill. In fact, the company sent out a letter to all of its franchise owners in the United States, announcing the “Experience the Future” upgrades. However, this time around, the company has vowed to foot a big portion of the bill. In the letter, McDonald’s told franchisees in the United States that it would be funding 55% of the costs associated with the upgrades.
The new upgrades include various changes. First and foremost, McDonald’s will be offering self-order kiosks. The company will also be adding new dessert counters, installing table-locator technology allowing employees to deliver food to customers, and more.
Why This Is Such Big News
At first glance, many may think that changing the look and functionality of stores will have very little to do with results and ultimately, movement in the value of the stock. However, that’s not necessarily the case here. First and foremost, it’s important to think of the financial burden associated with any major change. In this case, on the low end, if all stores cost $150,000 to renovate, which they will not, McDonald’s would shell out $1.155 billion in their 55% of these costs for their more than 14,000 restaurants in the United States.
On the other hand, that investment may very well pay off. Orders being incorrect is a big part of good service, and self-order kiosks will help the company in a big way on that. Also, other changes like a better look and more features will lead to better experiences for those visiting the restaurants. All in all, if this goes well, the view toward McDonald’s could change in the United States, which is exactly what the company has been trying to accomplish through various customer win-back programs.
What Binary Options Traders Should Be Watching For Ahead
Moving forward, McDonald’s is likely to present several opportunities for binary options traders. However, if you want to turn these opportunities into cold hard cash, you’re going to need to watch the news surrounding the company closely. In particular, watch the progress of the “Experience the Future” upgrades within restaurants in the United States. While this may be an expensive process, it could really send McDonald’s skyrocketing if things go well. So, watch the remodeling process throughout the United States, and most importantly, the results of these efforts in terms of revenue and how consumers view the company. Any update surrounding this story could lead to movement ahead.
What Do You Think?
Where do you think McDonald’s is headed moving forward? Join the discussion in the comments below!