Posted on 06/23/2017 2:12:56 PM PDT by Enlightened1
Cowen says McDonald's will upgrade 2,500 restaurants to its "Experience of the Future" technology by year-end, which includes digital ordering kiosks.
The firm raises its rating on McDonald's to outperform from market perform and price target for the shares to $180 from $142.
Same store sales estimate for 2018 raised to 3 percent from 2 percent.
McDonald's shares hit an all-time high on Tuesday as Wall Street expects sales to increase from new digital ordering kiosks that will replace cashiers in 2,500 restaurants.
Cowen raised its rating on McDonald's shares to outperform from market perform because of the technology upgrades, which are slated for the fast-food chain's restaurants this year.
McDonald's shares rallied 26 percent this year through Monday compared to the S&P 500's 10 percent return.
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017. The technology upgrades, part of what McDonald's calls "Experience of the Future," includes digital ordering kiosks that will be offered in 2,500 restaurants by the end of the year and table delivery.
"MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery," Charles wrote in a note to clients Tuesday. "Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales]."
He raised his 2018 U.S. same store sales growth estimate for the fast-food chain to 3 percent from 2 percent.
The analyst raised his price target for McDonald's to $180 from $142, representing 17.5 percent upside from Monday's close. He also raised his 2018 earnings-per-share forecast to $6.87 from $6.71 versus the Wall Street consensus of $6.83.
(Excerpt) Read more at cnbc.com ...
Although I don't think this will be limited to fast food industry. I am sure we will see it across many industries.
I’d consider going back to a McDonald’s if I can order my meal through a kiosk instead of trying to communicate with some half-witted millennial who is barely paying attention and is certain to screw it up completely even after I repeat what I want 3 times.
Seattle brought the future to us a little earlier!
(with their $15 minimum wage)
And so the “Fight for $15” enters the expected phase.....
That being said, I have no doubt it’s very difficult to deal with the public. Disclaimer, yes, I’m white, LOL.
I saw a white woman act like a jerk because she accidentally got cheese on a burger and she shoved it into the face of the young black kid at McD right in front of me (just up the road).
I told the manager and another coworker not to give him any trouble - he handled it well. I would not have blamed him if he shoved it into her face. There was no call for that. I would not have let that kid go down for her being a jerk, that’s for certain.
2,500? Wow!
Start with every outlet where the minimum wage is 15 an hour.
Great line! Yes indeed. Instead of improving the education and value of workers to earn a better wage, they tried to up the wage despite the worker’s value. We’re going to have trouble soon in this country with spare unqualified labor.
It’s a little embarrassing to roll out an app with “no image” on a couple of items.
But then, we can’t have anything but H1-B’s in I/T. Been speaking with a guy for about 4 days on and off. I can barely understand 1/2 of what he says. I’m sure I couldn’t speak 1% of his language, but this is what America’s I/T has become.
I have seen jerks of all races and genders.
Agree no employee should be treated that way by an abusive customer.
[We’re going to have trouble soon in this country with spare unqualified labor.]
I think we saw that in a couple of American cities the last couple of years....
Seattle brought the future to us a little earlier!
(with their $15 minimum wage)
There have been others doing this for some time. All McDonalds or others are
doing is letting the customer punch the buttons specifying the order instead of
telling the order to a worker and letting the worker punch the buttons.
A friend of mine from Thailand tells me relatives in Boston will be closing their restaurant. The new $15.00 an hour minimum wage has killed the place which had been open a long time.
Yeah she shoves it into his face (about 2 feet to my left) and goes “You see that!!?? What does it say?? Cheese!! I said no cheese!!”.
I would have said, “Sir (even if they’re younger than me) this was supposed to not have cheese. Could you please get me another one?”.
They screwed up my order that night (two different errors). I called back - they happily offered to fix it (as they have before) and all was well.
I usually try to check before I leave but I was juggling several items at the time (no chainsaws, though).
Yeah I did not realize they had 2,500 stores.
The main point is machines are replacing people at an alarming rate sooner than we thought. They should be 1/2 way this time next year.
Just the opposite...
I once ordered a CheeseWhopper with lettuce and mayo ONLY...
When I got it, it had everything but the kitchen sink on it...
I ask the manager about it and he took his finger...bare finger...and scraped off the tomato, onion and whatever else and handed it back to me...
Not only did he have to clean his finger but he had to clean his face and shirt cause that’s where the burger landed....
I don’t know why anyone thought the $15 minimum wage would hurt fast food. Looks like it’s the impetus to streamline and cut costs. Oopsie!
When I went to get the rest of my order (basically cheese and a bun for a 2nd burger) the lady at the drive-thru and I spoke (took one of my mom’s (RIP) dogs for a ride - he loves it).
I told her, I don’t know how you guys do it. I have not that kind of patience. I’d try to; then I’d tell them what I think.
Dealt with too many unappreciative jerks, LOL.
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