McDonald's sales, earnings growth this year will be pressured by volatility in several economies, but company plans to modernize itself past potential problems, securities analysts say

Nevin Barich

LOS ANGELES , May 22, 2012 (Industry Intelligence) – Securities analysts say that McDonald’s Corp.’s sales and earnings growth this year will be pressured by volatility in several economies, Nation’s Restaurant News reported May 21.

However, the analysts added, McDonald’s plans to modernize itself past potential problems.

McDonald’s global modernization program would include its ongoing remodeling program, as well as customer-facing ordering technologies and platforms to help managers increase throughput, said Bryan Elliott of Raymond James & Associates, adding that the company’s remodeling program has been a major driver of the brand’s global market share gains for the past decade.

Also, said Jeffrey Bernstein of Barclays Capital, back-of-the-house upgrades could expand capacity in McDonald’s restaurants by up to an estimated 30%. Such improvements include a high-density prep line in the kitchen that would allow for increasing menu complexity while reducing overall energy costs.

The primary source of this article is Nation’s Restaurant News, New York, New York, on May 21, 2012.

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