The total of Chicago residents murdered this year is up by over 50 percent, while pension debt exceeded $20 billion and taxes are climbing. The governor of Illinois dubbed the city’s government corrupt and described its financially staggering schools as crumbling prisons.
Still, McDonald’s Corporation is shifting its headquarters from a campus in suburban Oak Brook to a space just a couple of miles to downtown Chicago by the spring of 2018. The world’s biggest fast-food chain is joining a series of companies building an island of growth amid urban chaos.
Large corporations such as Motorola Solutions Inc., Kraft Heinz Co., and ConAgra Foods Inc. are also moving their headquarters or key offices in Chicago. McDonald’s announced on Monday that it will relocate the former spot of Oprah Winfrey’s Harpo Studios, in an effort to attract and hire Millennials who are moving around cities.
“They’re 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,” a professor, noting fast-food’s return to the city it left 45 years ago.
Shares of McDonald’s edged higher on Monday’s early trade as the popular fast-food on reports of its plan to move to Chicago. The decision is part of chief executive Steve Easterbrook’s attempt to capture new and younger employees.
Easterbrook aims to turn McDonald’s into a more modern company. Since starting as Chief Executive Officer over a year ago, he has curbed the menu, altered kitchen procedures and reduced overhead costs by dismissing corporate employees.
"Moving our headquarters to Chicago is another significant 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 customers, encouraging innovation and ensuring great talent is excited about where they work," Easterbrook noted in a statement.
McDonald’s Stock Update
Shares of McDonald’s rose 0.51 percent to $122.99, with a volume of 4,347,300 shares traded. That figure is lower that the company’s average daily trading volume of 5,438,628.
The stock is currently trading higher than it was a year ago, with the shares up by 19.28 percent. Its 52 week high is $131.96, while its 52 week low is $87.50.
McDonald’s stock has an existing market capitalization of 107,945,863,000. The stock has a dividend yield of 2.91 percent.
McDonald’s React to Staff Retention
Recently, McDonald’s has attributing its recent growth to higher wages and more generous employee benefits.
"The improvements we made to our compensation and benefits package to employees in U.S.-company operated restaurants, along with expanding the tuition assistance program Archways to Opportunity, have resulted in lower crew turnover and higher customer satisfaction scores," McDonald’s CEO Steve Easterbrook stated.
Last year, the leading fast-food brand disclosed that it would raise the salary of its lowest-paid staff in company-owned restaurants to at least $1 more than the locally charged minimum wage. It also introduced the benefits package for all full-time and part-time employees that consists of paid vacation and a tuition assistance program.
The company’s new approach might reflect an increasing awareness of the impact of employee turnover or low employee morale on operations.
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