McDonalds To Sell Its Taiwan Based Stores

McDonald's wishes to sell its Taiwan-based stores to franchise operators.

McDonald’s Corporation recently announced that the company wishes to sell almost 413 stores situated in Taiwan. These stores will be given to franchise operators in an attempt to minimize costs across the globe. McDonald’s stocks experienced a decline in the day’s trade along with the stock falling by 0.5 percent during the day’s trade and a further 0.14 percent during the after-hours.

McDonald’s restaurant has been stumbling since a long span of time now when it comes to their global operations along with coping with the restructuring plan earlier in FY15. Previously, the company also announced that they will reduce their stores in the United States which clearly indicates that the company is not doing well in their home ground. The company has vowed to minimize the number of old stores therefore when comparing the new stores they have opened the ratio is relatively low. In the United States itself the company has almost 14,333 outlets in the region.

The company had plans to undergo a restructuring program by the start of the fiscal year of 2015 where it decided to shut down almost 350 of its store in the Chinese American and Japanese market during the first quarter. Steve Easterbrook, who is the new chief executive officer of the firm is all keen to increase the profitability of the company since the time he has taken charge. So his plan to actually sell the company self-owned stores to franchises is actually a big achievement and a well thought out initiative.

The company has been present in the Taiwanese market for more than three decades now where it currently has more than 20,000 employees on board on full time and part time in the region.

This announcement by the company is extremely meaningful for the stakeholders who are extremely keen to know more about the details regarding the revamp plans as announced by Mr. Easterbrook earlier. The company has been dealing with several problems in the United States market which shows that competition has increased tremendously. The company’s sales trajectory for the first trimestral declined by 2.3 per cent across the globe but in United States, the sales declined by 2.6 percent.

In an interview to Reuters, the spokesperson of the firm recently made a comment that they are actually in quest of a development license in the region. This initiative by them will help to make decisions at a relatively faster pace in the region ensuring growth in the long run.