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The
new plan, announced in a letter from Chief Executive Officer
Chris Kempczinski to global employees and seen by Reuters, calls
for the Chicago-based company to cancel or "de-prioritize" some
initiatives while also accelerating store development.
That could lead to layoffs in some areas and expansion in
others, the company said.
"We will look to our strategy and our values to guide how we
reach those decisions and support every impacted member of the
company," the letter said, adding that McDonald's will begin
announcing key decisions by April 3.
McDonald's beat sales and profit estimates in its last quarterly
earnings results in October, helped by higher menu prices and
increased foot traffic from inflation-weary customers looking
for value meals. Its global same-store sales increased 9.5% in
the third quarter.
Like other fast-food chains, McDonald's has hiked menu prices to
keep up with surging commodity and labor costs.
McDonald's strong sales and profits also mean that it - like
several other restaurant chains including Starbucks Corp and
Chipotle Mexican Grill Inc - can embark on big expansion plans.
McDonald's did not provide numbers for how many new stores the
company wants to build.
It now also plans to streamline technology - including its
loyalty programs - and menu development in order to get new
products into use globally more quickly.
Kempczinski also promoted several executives and created a new
chief transformation officer role, his letter said.
(Reporting by Hilary Russ; Editing by Chizu Nomiyama and Aurora
Ellis)
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