McDonalds Ai Drive Thru Leads To A Robust Growth Potential

McDonalds Ai Drive Thru Leads To A Robust Growth Potential

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McDonalds Ai Drive Thru Leads To A Robust Growth Potential As the largest fast food chain in the world, McDonald’s has obtained a business landscape of more than 37,000 stores in over 100 countries. Despite the challenging marketing environment. McDonald’s still shows strong growth potential. Which is reflected in the confidence of the capital markets. McDonald’s pays a blended yield of about 2% on its outstanding debt. $1.2 billion on a little more than $50 billion outstanding.

Furthermore, the markets have respected McDonald’s never-ending commitment to innovation.

Never more has that commitment been showcased than with McDonald’s Artificial Intelligence Drive Thru.

Imagine a world where your license plate would generate an order as soon as you drove thru. Unless of course you had made prearranged changes to your desired order. Such a world of convenience.

One in which McDonald’s wants to deliver to their customers.

As McDonald’s has showcased their embrace of Artificial Intelligence, their share price has steadily rose.

McDonald’s Artificial Intelligence Machine Learning Future

Going back to the end of 2018, the confidence towards McDonald’s from the capital market significantly strengthened as McDonlad’s share price hit record highs with a peak price of $187.59 in November 2018. McDonald’s as a safe haven for long-term investors since McDonald’s has attained a stable trend in the unstable market environment.

But rolling out this type of technological change is not easy. McDonald’s has thousands of business partners in their franchisees. And they must work to keep them happy. Even if they don’t legally have a responsibility. It is the logical smart business play for McDonald’s.

As the largest fast-food chain restaurant brand, McDonald’s was challenged by whether the restaurant should be fully self-owned or franchised, which is always one of the initial dilemmas. Self-owned restaurants can strengthen the company’s control over them and facilitate the implementation of various reforms.

However, they take up a lot of manpower, capital, and other costs.

In addition, drag down the company’s expansion. At the same time, the franchised restaurants will deprive the company of full control, however they occupy less resources and are more conducive for the company’s development. McDonald’s has been refranchising for a couple of years in order to become more efficient and less capital-intensive.

The refranchising strategy has contributed to McDonald’s revenue growth for years, since it has resulted in lower revenues but higher operating margins. The company has benefited from the franchise model. As well by making good use of the significant estate portfolio. A business plan that grew fame in the movie “The Founder”. And generated rent and royalty income afterwards.

One of McDonald’s long-term goals is that 95% of its restaurants will be refranchised.

In the field of restaurants, optimizing customers’ experience always plays a crucial role along with the quality of products and service. Seeing the booming development of science and technology, more and more restaurants use technology initiatives to optimize their customers’ experience.

During recent years, McDonald’s has implemented the famous “Experience of the Future”

An initiative which CEO Steve Easterbrook endorsed. Part of the initiative is revamping its stores by deploying technology such as self-serve kiosks and table service, enhancing the restaurant’s mobile and delivery systems. The mobile ordering and payment systems are also rapidly being implemented in McDonald’s stores.

The stores can use the data collected from the system for more effective marketing activities to generate more revenue. McDonald’s has also associated with relative platforms such as Uber Eats to introduce its delivery service. The effective and extensive use of technology turns out to be another key growth factor for McDonald’s because of the higher average check. According to Morgan Stanley analyst John Glass. The impact of McDonald’s store modernization efforts and updated business model. “Is undervalued by the market.” Glass also showed strong confidence in the effect of McDonald’s extensive store modernization efforts, which would help enhance the financial performance for the future.

McDonald’s store modernization efforts have also received recognition from Bank of America analyst Gregory Francfort who said McDonald’s had achieved success in Canada through leveraging its loyalty program to drive digital sales, growing percentage of kiosk ordering among in-store orders, and diversifying delivery mix.

Innovation will help the company keep up with the trend and consistently attract customers. Since Steve Easterbrook, McDonald’s CEO, took charge of McDonald’s in 2015, he started the innovation from the basic items such as the menu. Easterbrook renewed the menu by taking back unsuccessful products and bringing in a brand-new menu focusing on the best selling products. In addition, the new menu includes more better quality ingredients such as fresh beef. McDonald’s also introduced burgers with new tastes all over the world. For example, it has introduced Bacon Big Macs to American people. 

In conclusion, McDonald’s has answered the demands of the capital markets. And is expected to embrace a prosperous future by its competitiveness driven by its refranchising strategy, technology, and innovation. This strategy is no more obvious than in an Ai Drive Thru that can seemlessly serve ever car in America. With only the glimpse of a license plate.

McDonalds Ai Drive Thru Leads To A Robust Growth Potential