Soon they'll be passing on real saving to their customers with much lower prices!
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 ...
[Will they still have drive through? They will need a lot of touch screens to handle that.]
Yeah, but you have to slow waaaaay down. Or type really fast.
;)
I wonder if those work with the App.
In S. CA, if the Angels hot a HR during a Home Game, you get an Artisan Sandwich (Beef or Chicken) for FREE with any purchase. They have been hitting a bunch of HR’s.
I order a $1 Coke and I walk out with a Grilled Chicken Sandwich with Guacamole on an Artisan Roll (Menu Price over $5) for $1.08 including the Sales Tax.
“We’re going to have trouble soon in this country with spare unqualified labor.”
we already do. i read that BLM stats show six million jobs are sitting unfilled right now, presumably due to lack of qualified workers. in the mean time, we have 47% on the dole.
how soon before starbucks adds a credit card reader to their fully automatic espresso machines and turns then 180 degrees on the counter so customers can push the GO button themselves?
“passing laws prohibiting automation”
or taxing it.
bill gate’s robot tax (he’s already got HIS billions):
http://www.zerohedge.com/news/2017-04-04/san-fran-politician-considers-legislation-tax-robots
“this is EXACTLY what they want.”
right. slops for the peasants and caviar for themselves.
Any of McDonalds direct competitors will do this shift as well.
Fight for $15! will be replaced with Kill the Kiosk!
having read the article, McDs seems to think the kiosks will increase the NUMBER of orders and thereby sell more food. I’m not sure about that, either. Perhaps. But only if it takes less time to order at a kiosk than with a person. More likely, though, idiots will stand in front of the kiosks and ponder their orders for lengthy amounts of time. Perhaps the kiosks should have an ED-209 voice that says after 30 seconds of nothing happening: “Sir, either order now or step aside. 10, 9, 8, 7, 6 ...”
For sure, the ordering process will more accurate, but that won’t make order fulfillment more accurate.
McD’s has pretty much lost me forever. If I was dying of starvation and nothing else was around i might get some food there.
Kiosks are not going to get me back.
Soon they'll be passing on real saving to their customers with much lower prices!
I’m not germphobic, but can you imagine how unbelievably NASTY those kiosts are going to be? Little booger eaters swiping their slime all over it...
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Throw away type plastic gloves.
Cheap and disposable.
I agree. There will still be problems.
It will be interesting to watch how it plays out.
I can hear the Left squealing right now.
One of my joys in life...
It’ll save plenty. There are often multiple people needed to cover one job. Managers need to cover for employees who get sick, call in sick, don’t come in at all, get fired, have a conflict with another job. The kiosks will tale care of those. Folks who want to work in a restaurant better learn how to repair and maintain the machines.
-——————
Having a smaller staff doesn’t solve this age old problem.
Eventually society will come to realize that 30% of the population NEEDS these crappy low paying jobs. And millions of hungry, jobless people with no future and no work turn into rampaging armies.
Over 14,000 in U.S..
The nation survived the transition to the industrial age. We’ll survive this transition, too.
And why do they need cooks? Any robot can easily do that too.
The Industrial Age created more jobs, not less. The move to humanless work is literally about getting rid of low paying manual labor. Getting rid of jobs. Innovation is important, but there is a tipping point. Especially in our rural areas where jobs have always been lean.
If a person is ignorant of how humans - the majority of humans - work, live and think, then a shrinking entry level job market probably sounds fantastic.
So now instead of a human cashier telling me “The milkshake machine is broken” after I order a milkshake, a machine will tell me instead.
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