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McDonald's: It All Comes Down to Leadership Innovation
Tickers: BKW, CMG, MCD, WEN, YUM
By Justin Weinstein - The Motley Fool
January 31, 2013
For McDonald's (NYSE: MCD), the key to its past success has been a commitment to its core business while continually innovating its product line to meet the needs and wants of the ever-changing consumer. The world of fast-food has evolved in many ways over the past three years alone and this has directly impacted McDonald's business. The entry and growth of players like 5-Guys and Chipotle (NYSE: CMG) along with the rising competition from Wendy's (NASDAQ: WEN), Burger King (NYSE: BKW), and YUM! Brands (NYSE: YUM) has changed the market and made it more and more essential for McDonald's to innovate its product line, while staying true to its core. McDonald's completion of FY12 and Q4 marks an end to a difficult year for the fast-food giant. Though making strides in terms of menu offerings and value-meals, the company saw soft sales characterize the past several periods with expected negative sales growth in January...
Though not alarming due to the competitive landscape and slowdown in the global economy, these earnings do show the need for McDonald's to have a constant eye on the competitive landscape and what they can do to differentiate against the growing number of competitors. What matters for investors is how the company is preparing for FY13 and what these plans will mean for stock performance and future growth. The answer to this question lies in the hands of Don Thompson:
Throughout 2012 we concentrated our efforts behind the global priorities that represent our greatest opportunities under the Plan to Win - optimizing our menu, modernizing the customer experience and broadening accessibility to our Brand. McDonald's continued to grow by remaining focused on what matters most to our customers, although our results reflect the impact of the challenging global operating, economic and competitive environment. Our overall performance is a testament to the underlying strength of our business and our dedicated System of franchisees, suppliers and employees who continue to drive toward our mission to become our customers' favorite place and way to eat and drink.
These words by Thompson show a clear understanding of what will be necessary to succeed in the coming years. Though many CEO's speak these same types of words, Thompson has shown that McDonald's is willing and able to adapt in this changing world...
McDonald's Announces Quarterly Cash Dividend
via WSJ.com - January 30, 2013, 4:01 p.m. ET
OAK BROOK, Ill., Jan. 30, 2013 /PRNewswire/ --Today, McDonald's Board of Directors declared a quarterly cash dividend of $0.77 per share of common stock payable on March 15, 2013 to shareholders of record at the close of business on March 1, 2013.
McDonald's plans to release January 2013 sales information on February 8, 2013.
McDonald's is the world's leading global foodservice retailer with more than 34,000 locations serving approximately 69 million customers in 119 countries each day. More than 80 percent of McDonald's restaurants worldwide are owned and operated by independent local men and women. To learn more about the company, please visit www.aboutmcdonalds.com.
/CONTACT: Investors, Kathy Martin, 630-623-7833; Media, Heidi Barker, 630-623-3791
/Web site: http://www.aboutmcdonalds.com