Posted on 04/08/2023 8:28:52 PM PDT by SeekAndFind
McDonald’s Corp.’s restructuring this week is reaching company wide, resulting in hundreds of layoffs and for some employees reductions in their packages, according to people familiar with the matter.
Job cuts and changes at the burger chain have affected employees in the U.S. and abroad, at McDonald’s Chicago headquarters and in its field offices, and across departments including marketing and operations, the people said.
The corporate restructuring has unfolded in a multipart process this week, some of the people said and internal company communications showed. McDonald’s temporarily closed its U.S. offices and started informing some corporate employees about layoffs on Monday, The Wall Street Journal has reported.
The fast-food chain also offered some employees a chance to remain at the company with reductions in their compensation packages, including changes to titles and benefits such as bonuses and equity grants, according to people familiar with the matter.
This week’s restructuring moves included role changes or promotions for other employees, including nearly 10 U.S. officers working across operations, finance and marketing, according to an internal company email sent Thursday.
Companies across the U.S. economy are shedding jobs, often white-collar positions, amid concerns about a potential recession. Layoffs that began in the tech sector last year have spread to other industries, with companies from Goldman Sachs Group Inc. to Amazon.com Inc. recently trimming their ranks.
McDonald’s told U.S. restaurant owners and operators in the Thursday email that it would close its field offices in coming months, saying that they are underutilized with most field staff spending their time in restaurants. The company said instead it would adopt a single, national structure overseeing its 10 field offices.
“While the McDonald’s Brand is in the strongest position it has been in years, we also recognize that our business has grown increasingly complex in recent years,”
(Excerpt) Read more at wsj.com ...
I didn't realize "Mexican" was a race.
So sorry, ethnicity. What was your point to even bring that up. My local McD is owned and staffed almost entirely by African American kids and a few white kids, it’s in a Lilly white neighborhood and the food is the same as 15 years ago. I go there almost weekly and it’s packed darned near all day.
EXACTLY
My local McD is constantly hiring at $15 an hour. McD is not cutting jobs at their restaurants, it’s totally opposite of that, they can’t hire enough workers. McD is cutting deadwood from their corporate staff. McD has approximately 150,000 Corporate employees and these layoffs have been announced as in the “Hundreds”. BTW, 70% of those Corporate employees are employed outside of the US.
Bet ya a Big Mac Meal they’ll net $6 or more billion in 23.
The article clearly states it is HQ being affected, not line workers at restaurants.
In fact, nearly all McDonald's restaurants are franchised and independently owned. McDonalds Corp has NO SAY in hiring and firing line workers in franchised restaurants. Those decisions are made by the franchiser/operators and are based on local market conditions.
For those who don't understand how McDonald's makes most of their money, it has very little to do with burgers and fries. The business model that made McDonalds what they are today is based on purchasing land and then leasing that land (and building) back to franchisers, who assume most of the risk of running the actual burger chain operation. Franchisers and their managers attend "Hamburger University" in Chicago where they are taught the nuts and bolts of running a successful McDonalds restaurant.
It is fascinating to read how Ray Kroc built the business to what it is today. He would fly around the country in a private plane, analyzing traffic patterns of growing suburbs, particularly where interstate highways were about to be built through. McDonald's would go on to be one of the largest landowners in the United States and almost all their revenue and profit came from those lease payments of the franchisers.
Everyone should see the movie ”The Founder” with Michael Keaton as Ray Kroc. It’s a fascinating and mostly very factual account of what Kroc did. (Not all nice) I believe that Americans and Conservatives should be behind McD whether they eat there or not. It’s an American success story that’s become the second largest private employer only behind Walmart. Nearly 1.7 million people depend on McD to earn a living. Like the food or not but quit ragging on them and go eat somewhere else or cook at home. We need companies like McD and Wally and yes even Taco Bell.
Not to mention that McD stock was at $17 a share exactly 20 years ago. Today it sits at a nice $282. Just think of all the 401k’s,IRA’s and Pension funds that rely on Companies like this to pay the common man a retirement income. We should champion companies like this. Amazon, Exxon, Shell, Apple, Microsoft et al have all made our investment funds flourish over the last 20 years yet everybody seemingly rags on them.
To your comments, I neither shop at Wal-Mart nor eat at McDonalds. But I do own stock in both!
And it was corporate staff who made the decision to hire people with a tenuous grip on the English language, corporate staff who during training, didn’t instill in employees a sense of being courteous to the customer, and the corporate staff who decided to cater to the hip hop culture with their “I’m lovin it” ad campaign.
Don’t get me started on the changes in the quality of the food.
The corporation is not in the food business they are in the real estate business. There was an excellent story about Ray Crock and how he was advised to abandon the food end of the business and rent the locations, on't remember where i saw it but worth the time to watch it. Of course the McDonald brothers were to set in their ways to see the possibilities and were just left to die on the vine.
Well; blame it on your 'complex' menu.
Hint: check out https://www.in-n-out.com/menu/not-so-secret-menu
I am your inverse.
By not having any stock in those companies but eating and shopping at both.
No kinko boxes.
Just used drive through plastic bags.
Corporate staff do not hire anyone that works in a McD restaurant, the franchise owner or the management the owners hire does. Of course the hiring is solely based on those who apply for positions. Corporate staff do not train anyone that works in the restaurant, they train the Owner and management that the franchise owner hires and pays to attend McD’s Hamburger University. Owner and Management of each restaurant are responsible for training the McD way at the local level.
Targeting the (your words) “hip hop” culture is no crime, they spend money too and lots of it. You know, they like McNuggets and McChicken sammies, and I’ve been told they are fond of the Orange Fanta that McD sells. Drinks are a high markup item and both Corporate and Franchise are happy to sell all the Fanta they can to whoever they can. If you owned a franchise you would do the same and don’t deny it. If you didn’t you’d have a hell of a discrimination suit on your hands and probably lose your franchise rights and upwards of your $2 million investment.
I eat at McD and sometimes shop at Walmart and I have both stocks in my IRA. Be a fool not to.
“The Founder” with Michael Keaton as Ray Kroc. Everyone should watch this movie, it might stop some of the nonsense spouted on this thread and the other 2 or 3 threads on this same subject from last week. It’s amazing how people like to run their keyboards and they don’t know shit from shinola about the subject. If you don’t like the food don’t eat it, plenty of others are, to the tune of $6 billion in net profit last year.
Ray Kroc would be ashamed if he saw the state of the company today.
I’m not so sure about that. Maybe, maybe not. McD had 7,500 stores and $8 billion in sales when he died in 1983, today there are 39,000 stores worldwide with $23 billion in sales. I can honestly say that I sure have had a bad Big Mac or two or some not so fresh fries in 1983. I remember a long time ago a buy one get one offer on Big Macs, I bought two and drove off and neither Sammie had any meat on them, just bun, lettuce and sauce. Had to return and have that fixed. Shit happens.
MCD 2021 Annual Report snipets of information
40,031 McDonald’s restaurants at year-end 2021
37,295 (93%) were franchised
2,736 (7%) were Company owned
Across the System, nearly 1,500 new restaurants opened during 2021.
At Company owned restaurants - approximately 200,000 worldwide employees
- more than 75% of those employees are outside the U.S.
- less than 25% are within the U.S.
Directly operating McDonald’s restaurants contributes significantly to the Company’s ability to act as a credible franchisor.
Under a conventional franchise arrangement, the Company generally owns or secures a long-term lease on the land and building for the restaurant location, and the franchisee pays for equipment, signs, seating and decor.
Franchisees are responsible for reinvesting capital in their business over time. In addition, to accelerate implementaion of certain initiatives, the Company may co-invest with franchisees to fund improvements to their restaurants or operating systems.
The Company requires franchises to meet rigorous standards and generally does not work with passive investors.
Conventional franchisees contribute to the Company’s revenue, primarily through the payment of rent and royalties upon a percent of sales, with specified miniumum rent payments, along with initial fees paid upon the opening of a new restaurant or grant of a new franchise.
Company maintains a Supplier Code of Conduct. The Company and its affiliates and subsidiaries generally do not supply food, paper or related items to any McDonald’s restaurants.
Revenue 2021:
- Company-operated restaurants: $9.79 bil
- franchised restaurants: $13.09 bil
Total operating costs and expenses: $12.87 bil
Cash and equivalents (Dec. 31, 2021): $4.71 bil
Earnings per common share (diluted): $10.04
Dividends declared per sommon share: $5.25
Dividends declared per common share: $5.25
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