macdonalds

Question 1

Reorganization:

Answer 1

McDonald’s will undergo a reorganization to address inefficiencies caused by siloed divisions. Kempczinski described the current organizational structure as outdated and hindering innovation.

Question 2

Segments:

Answer 2

McDonald’s currently operates in three segments: the U.S., international operated markets, and international developmental licensed markets. The company operates in 119 markets worldwide.

Question 3

Restaurant Expansion:

Answer 3

McDonald’s plans to accelerate the development of new restaurants to meet increased demand. Exact figures for new restaurant openings in 2023 have not been released yet.

Question 4

Uncertainty about Job Cuts:

Answer 4

The company has not finalized the number of job cuts or new restaurant openings. Details are expected to be communicated by April 3.

Question 5

Internal Promotions

Answer 5

Several internal promotions were announced to support the new strategy. These include Morgan Flatley as Global Chief Marketing Officer overseeing new business ventures, Skye Anderson moving to global business services, Andrew Gregory’s expanded role in global franchising, and Spero Droulias as Chief Transformation Officer.

Question 6

Market Response

Answer 6

McDonald’s stock closed up more than 2% following the announcement.
Overall, McDonald’s is undergoing significant changes aimed at enhancing efficiency, fostering innovation, and accelerating restaurant expansion. These changes reflect the company’s efforts to adapt to evolving market conditions and consumer preferences.