Despite the financial obstacles in Chicago, McDonalds is moving back to its headquarters effective in 2018.
The fast-food restaurant giant stated that they are a brand on the move in more ways than one after it signed a lease at 1045 W. Randolph St. in Chicago’s vibrant West Loop. As the company moved into the downtown of Chicago, the local government expressed its gratitude.
Chicago Mayor Rahm Emanuel said that McDonald’s has identified the keys to success to today’s global market, talent, technology, and access to transportation networks. McDonalds left Chicago 45 years ago
Moreover, McDonalds plans to convert the area into a contemporary environment to attract connections and coalition among the target customers.
“Moving our headquarters to Chicago is another important step in our journey to build a better McDonald’s. This world-class environment will continue to drive business momentum by getting us even closer to consumers, encouraging innovation and ensuring great talent is excited about where they work,” Chief Executive Steve Easterbrook explained.
Financial Risks in Chicago
Meanwhile, as the firm makes its way to Chicago, it has to deal with the mounting pension debt and taxes in the city. Apart from the fast food chain, other companies such as Kraft Heinz, and Motorola were moving their offices in the said city.
One of the professors at Northwestern University’s Kellogg Graduate School of Management indicated in his statement that these companies are following the labor force and they don’t want to be in the cornfields, out of sight and out of mind -- they want to be where the action is.
Republican Governor Bruce Rauner bluntly called the city government a corrupt one and mismanaged and financially bereft for years. Mayor Emmanuel imposed the highest property tax-hike last October as the pension debts soared. In 2015, Chicago attained the lowest credit rating and still the third largest city.
Joshua Drucker, a professor of urban planning and public policy at the University of Illinois at Chicago, had an opposite view on the financial stability in Chicago. The professor explained that Chicago has been around for 180 years, and, after a while, people tend to tune out the political rhetoric. He added that the business community believes that the city will survive it.
McDonalds in India
In other news, McDonald’s India has officially unveiled its first ever restaurant in Andhra Pradesh through its subsidiary Hardcastle Restaurants Private. Gerald Dias, director, McDonald’s India- business operations, south, introduced the company’s first restaurant in Nellore.
“Our efficient model of supply chain sources 98% of ingredients locally. Quality, service, cleanliness and value form the unique value proposition which reflects in our food and hospitality,” Mr. Dias said.
Recently, the shares of McDonald’s Corporation remained flat with a market capitalization of 108.52 billion. The largest chain of hamburger fast food restaurant worldwide has a dividend yield of 2.89 percent and a price earnings ratio of 23.68.
The stock has a 52-week high of $131.96 and a 52-week low of $87.50. McDonalds has an average daily volume of 5,438.628 with a 200-day SMA of $144.31 and 50-day SMA of $125.61. The company also received a consensus rating of ‘overweight’ from a number of analysts.
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