McDonald's To Progress Rapidly Under Easterbrook's Leadership

The fast food company has been rated bullishly by the Street analysts who have also appreciated the way Easterbrook has been carrying the giant foward.

McDonald’s Corporation has been on a roller coaster ride for the past couple of months and things have now started to take a positive turn, which analysts believe is due to the progressive leadership it is receiving from Steve Easterbrook, who took the CEO’s position in the management a couple of months back. The shares of the company have climbed the ladder in a rapid speed over the past few weeks and now the giant has scored a share price which is 20% higher than the share value it had a year before the current one. This progress in the stock market is one to be taken into consideration by the rivals, even though the fast food giant still has a lot to improve at.

As per the records on the index, McDonald’s stock has turned out to be one of the best performing ones so far in the year and this is great for the investor sentiment, which was previously quite over to the bearish side due to the negatives being faced in the sales department. The giant has been covered by analysts at The Street and one such analysts, Brian Sozzi, has presented an analysis report to the investors in which he has stated that the fast food giant has the biggest franchises and outlets network spread all over the country and this just brings it more responsibility to deal with its problems in a much better way than how its rivals handle theirs.

McDonald’s management, under Easterbrook’s strict guidance, has been carrying business activities forward quite positively, facing some problems here and there nonetheless. At the time Don Thompson left the company, who is the ex CEO of the food giant, the food giant was almost in ruins with almost all the equity firms giving out bearish ratings to its stock without thinking twice. Easterbrook, however, has no doubt turned things around on a massive level by first bringing out the Turnaround plan and then implementing it with higher cash dividends for the investors along with the all-day breakfast plan which has reportedly increased the previously sluggish sales of the company.

On the other hand, McDonald’s restaurants are also experiencing really low same stores sales but despite that, Sozzi has stated that Easterbrook’s efforts to bring a much needed difference to the business strategies of the giant have indeed brought to the food giant exactly what it needed to sustain its position in the market. The analyst also believes that he has, with great leadership skills, turned out to change the company’s destiny on the whole by making it turn towards a new direction with no intentions of lagging behind anymore.

All Day Breakfast Wont Save McDonald's

McDonald's needs to take aggressive moves to redeem itself.

McDonald's Corporation is in trouble all over again where the fast food giants same store sales fell significantly over the past 12 months which ended in June FY15. The company’s turmoil did not end here and they actually stopped reporting the sales figure altogether. A report was published by AP, since 1970 this is the first time in the history that a higher number of Golden Arches restaurants would shut down then open. This year was extremely tough for McDonald's where their embattled chief executive officer stepped down when the year began due to a series of mishaps and blunders. This encompassed the meat incident that took place in China, weak management with no proper structure to deal with strikes organized by employees, along with an misleading employment ruling with the Board of National Labor Relation that can disgruntle the business mechanism of McDonald's. The company at this point of time is facing a major havoc but the solution to their misery is an “All Day Breakfast” McDonald’s menu is now being improvised and the company has finally found a solution which they believe might change the game for them. As of today, the company has decided to serve breakfast all day long at 14,300 McDonald's outlets within the United States. The company started to test this venture in March as reported by the Wall Street Journal. In almost a time span of seven months, the fast food company has devised the necessary infrastructure to offer All Day Breakfast. So all those who wish to have hot cakes, sausages, burritos etc. need not worry about the 10:30 a.m breakfast cut-off time. However, items like Egg McMuffins will not be served at certain outlets. This idea was put forward by Steve Easterbrook who became the chief executive officer of the firm with an aim to bring the company out of its ailing stage and pace its way to redeem itself as the “modern progressive” hamburger company. The reason behind McDonald's downfall is simple, casual dine out places have increased substantially in a short span of time giving birth to competition. The company strategized and started to target the weightwatchers by including healthy items in its menu. The current state of McDonald's is extremely vulnerable that needs aggressive moves to counter the ailing state. An all day breakfast is a great tactic to attract breakfast item lovers but it is still not that aggressive to redeem their position. A lot more needs to be done at this point.