Friday, February 19, 2016

McDonald’s Franchisees Doubts all-day breakfast menu will be Successful

business, finance, Mcdonalds

McDonald’s are doing everything they could to bring back lost customers, their recent trick is the all-day breakfast menu. Franchisees doubt that it will be successful based on their internal annual survey of franchisees. Only 14% of U.S. franchisees agreed or strongly agreed that the company’s turnaround agenda was working. And only 35% said they felt confident about McDonald’s success over the long term, down from 46% the previous year, according to survey results provided to The Associated Press.

Only 48% said they had a clear understanding of the company’s vision of becoming a “modern progressive burger and breakfast company.” Franchisees that say they were “proud to be a McDonald’s Owner/Operator” also fell to 77% down from 84% in 2014.

McDonald’s Corp. is working to refresh its image and combat slumping sales, with the chain facing changing eating preferences and intense competition. Lisa McComb, a McDonald’s representative, said in a statement that the results of the franchisee survey were “hardly surprising” since it was conducted between September 18 and October 4, ahead of the October 6 launch of all-day breakfast and “before McDonald’s ended the year with momentum.”

She said the company was starting 2016 “in a better place than where we were 12 months ago.”

However, according to a Business Insider report McDonald's all-day breakfast menu is crushing its competitors and sales at McDonald's US locations open for at least one year rose for the first time in two years in the fourth quarter thanks to the company's new all-day breakfast offering.

Jack in the Box sales in the last part of the quarter were lower than we anticipated as several competitors began promoting aggressive value offers.

Howard Penney, an analyst at Hedgeye Risk Management, tweeted that "the market is saying that [Dunkin Donuts] & [Bojangles] are the other companies impacted by the mighty @McDonaldsCorp all-day breakfast."

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