Growth Club
1851 Growth Club
Mickey D’s Hopes Refranchising Will Lead to Turnaround
The fast-food giant is looking to turn more corporate stores into franchise locations.
McDonald’s may be the reigning champ of fast-food franchising, but the company has faced its fair share of negative news of late.
According to a recent report from USA Today, new CEO Steve Easterbrook is looking to refranchising to improve the company’s fortunes. The news source reported McDonald’s will increase refranchising to include 90 percent of the chain’s 36,000-plus locations by 2018. This marks a 9 percent increase from the current refranchising level.
Easterbrook referred to the company’s increased focus on converting company-owned stores to franchise locations as part of an “urgent need to reset this business.”
This comes on the heels of news in April that first-quarter comparable sales decreased 2.3 percent for the company.
Read the full story here.
