During an investor conference presentation today, McDonald's Corporation President and Chief Executive Officer Don Thompson announced an intensified commitment to the Company's customer-focused strategic framework – the Plan to Win – and other actions to enhance long-term shareholder value.
"The Plan to Win along with our competitive advantages, System alignment and financial discipline has served as our strategic roadmap, guiding the execution of our global growth priorities," said Don Thompson. "Today, the Plan to Win has evolved as we reenergize the McDonald's System by placing the customer at the center of everything we do. We are pursuing targeted growth opportunities to provide our customers with their favorite food and drink, create memorable experiences, offer unparalleled convenience and become an even more trusted brand to deliver the most meaningful impact for our customers and our business."
In addition, the Company announced plans to optimize its capital and ownership structures and scrutinize G&A spending. Specifically, the Company expects to:
- Return $18 to $20 billion to shareholders between 2014 and 2016 through a combination of dividends and share repurchases, representing a 10% to 20% increase over the amount of cash returned between 2011 and 2013;
- Refranchise at least 1,500 restaurants by the end of 2016, primarily in Asia/Pacific, Middle East and Africa (APMEA) and Europe, reflecting a more than 50% increase in refranchising activity compared with the prior three-year period; and
- Analyze G&A spending with the primary intent of reallocating resources to higher return initiatives and growth areas, including development of the Company's global digital capabilities.
Don Thompson concluded, "We are committed to continuous improvement in everything we do – from the food we serve, to our engagement with our customers, to the management of our financial resources. Guided by our evolved customer-focused priorities, the McDonald's System is determined to create experiences that our customers notice and appreciate so they reward us with their business and loyalty."
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