McDonald's (MCD) Plans To Open Restaurants In Nordic Regions
Zacks Investment Research | Apr 10, 2018 10:38PM ET
Per media report, McDonald's Corporation (NYSE:MCD) is likely to open 200 restaurants in the Nordic region over the next decade, in a bid to attract customers. Notably, it is the world’s largest fast-food restaurant chain, with presence in more than 100 countries. In fact, with an almost 10% share of the global informal-eating-out market there is ample scope for the company to grow in the future.
Meanwhile, McDonald’s seems to be increasingly focusing on delivery services in order to cater to its customers' needs in a better way. It is expected to begin home delivery in the Nordic region from this year. In Sweden and Finland, McDonald’s will start home delivery services from May onwards, while in Denmark and Norway in the latter half of 2018. In Denmark, Sweden, Norway as well as Finland the company serves 150 million customers a year and has nearly 430 restaurants in the region.
These recent plans indicate that the company is targeting to regain its market share from its competitors. McDonald’s has been reporting weak traffic trends in certain major markets for quite some time now.
Expansion Plans to Drive Traffic & Sales
Increasing guest counts remain the company’s top priority and it intends to regain customers by focusing on food quality, convenience and value. Moreover, McDonald’s expects its velocity accelerators of Experience of the Future, digital and delivery to drive growth over the long term. We believe that the company’s decision to open restaurants in Nordic regions will not only boost sales and traffic but will also pave way for long-term growth.
Stock Performance
In the past three months, shares of the Zacks Rank #4 (Sell) company have lost 6.2%, wider than the Zacks Investment Research
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