Following the new global growth plan disclosed on March 1, McDonald’s Corporation (NYSE: MCD) has been testing the waters on its mobile ordering and payment app in-lined with its goal to elevate and redefine the customer experience. The stock has been responding positively since the release of its fourth quarter and full year 2016 results. With the enhancement of its digital capabilities, the Company may keep the enthusiasm of the investors on the stock.
As seen in the image below, the stock started at 121.00 levels after the earnings report. Proving the optimism on the stock, it climbed until 129.00 levels recently. The stock is currently trading from 127.00 to 128.00 as the company unveils its capability to be the global leader in the informal eating out category.
The stock traded at 131.00 levels, advancing more than 10 percent and an all-time high for the stock, on May 2016 as the market players responded favorably on the same-store sales growth of 6.2% worldwide in the first quarter. Apparently, the current figures may eventually take the stock on a more bullish run in the following days.
In the pre-market session on Thursday, the stock went up 0.48 percent to $128.49. MCD opened at 128.21 with a session high of 128.30 and a session low of 127.47. The stock has a market capitalization of $104.89 billion, with a price earnings ratio of 23.34 and dividend yield of 2.94 percent. Its 52-week high is at 131.96 while its 52-week low is at 110.33. A positive outlook will likely remain throughout the trading day.
MCDO Mobile Ordering App
On Wednesday, Mcdonald’s began the testing of its mobile ordering and payment program wherein customers can order ahead, pay within the app and choose one of the various ways to pick up. The test was conducted in 80 chains in Northern California and Spokane, Washington before the official launch of the application on March 20.
According to the long-term global growth plan of the Company, mobile order and pay will be launched in 20,000 restaurants in some of the largest markets, including the U.S., by the end of 2017. As the company elevates the customer experience, the plan targets its three pillars- retaining existing customers, regaining customers lost, converting casual customers to committed customers.
The customer-centric strategy of the Mcdonald’s proves its reliance on the sustainable growth brought by its valued customers.
Chief Executive Officer Steve Easterbrook concluded during the Company's Investor Day event that “Through enhanced technology to elevate and modernize the customer experience, a focus on the quality and value of our food and redefined convenience through delivery, we have a bold vision for the future and the urgency to act on it. We are moving with velocity to drive profitable growth and becoming an even better McDonald's serving more customers delicious food each day around the world."
Aside from the mobile app, the Company also plans to accelerate deployment of experience of the future restaurants in the U.S., initiate a new 3-year target for cash return to shareholders, and establish new financial targets for sales, operating margin, earnings per share and return on incremental invested capital.
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