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McDonald's Franchisees Still Pessimistic About Brand
Internal survey reveals negativity despite rollout of much hyped all-day breakfast
As reported by Leslie Patton at Bloomberg, only about 14 percent of the chain’s franchisees are convinced the comeback plan is working. And only 35 percent of franchisees are confident in the long-term success of the fast food giant, a drop from the 46 percent last year. McDonald's conducts the survey annually and the last iteration was completed in October and November.
Despite the pessimism, McDonald's posted U.S. same store sales growth of 5.7 percent in the fourth quarter, which was some of the best numbers the brand has seen in years. The company claims its success is due to its shift into all-day breakfast in combination with mild winter conditions. The company also posted positive sales growth in the U.S. in October, which helped the stock jump to its biggest increase in seven years.
According to Chief Executive Officer Steve Easterbrook, he is pleased with the progress, but believes it will take another six months of positive comparable sales and guest count growth to get them through the growth phase of the turnaround.
Lisa McComb, a spokeswoman for McDonald's, said the results we hardly surprising given that the survey was conducted before the all-day breakfast rollout and that the start of 2016 shows promise.
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