McDonald's joins digital bandwagon to intensify sales performance in China. (Photo : Reuters)
After making several big-time announcements during the past two months, McDonald's Corp. will announce its turnaround plan to jump start its fast food empire. Analysts are uncertain exactly what the CEO will detail about the company's future.
The Golden Arches' CEO, Steve Easterbrook, has already made several key announcements on topics ranging from cutting menu items to increasing salaries. Last month McDonald's also announced 700 restaurant closures, according to ABC News.
Brian Bittner, a financial analyst, says that investors will be "laser-focused." McDonald's has only officially stated that Easterbrook will share the first steps of the company's "turnaround plan."
The announcement will happen on Monday morning. It will be followed by conference calls with the media and analysts.
Easterbrook has served as the fast food giant's CEO since March 1. On several occasions he has stated that he is challenging "conventional thinking," according to NASDAQ.
Analysts think McDonald's will launch a plan that is similar to the company's 2003 strategy "Plan To Win." They refer to the new strategy as "Plan to Win 2.0."
However, some general strategies are obvious. They include improving McDonald's food quality, boosting efficiency, and increasing its shares' value.
Many analysts predict that McDonald's CEO will focus on the restaurants' operation instead of its corporate structure. They hope Easterbrook will address issues such as buttermilk chicken sandwiches, and improved restaurant technology.
Stephen Anderson, an analyst, says that Plan To Win 2.0 has not been focused until now. However, he admits that it could eventually "do the trick."
McDonald's reported recently that first-quarter profits dropped a steep 32 percent. Earnings have been soft for two years, and shares have dropped over 2 percent since the end of 2011.
Easterbrook says that turnaround phrases are naturally a "little bumpy." However, he also adds that daring decision-making is necessary.
