Restaurant chain McDonald’s Corp is working on a new turnaround plan in order to boost its profits and improve sales as the company is struggling hard to regain its position in the highly competitive fast food market.
The company’s shares by sales increased 3.8 percent to USD 98.38 in early trading on Wednesday.
Under new Chief Executive Steve Easterbrook, the global comparable sales of McDonald’s at restaurants open at least 13 months dropped 2.3 percent in the first quarter that ended March 31.
Releasing a statement, the company said that the CEO will be sharing preliminary details of the turnaround plan on May 4.
Mark Kalinowski, an analyst at Janney Montgomery Scott, said, “Folks hoping for a near-term rise in the stock may be hanging their hat on hopes that McDonald’s can spark some pizzazz in investors that day.”
The company is making enough efforts to recover from food scandals in Japan and China. Moreover, it is facing tough competition at the home market in the US from various nimble chains ranging from Burger King to Chipotle Mexican Grill Inc.
McDonald’s promotions in the United States failed to attract the customers in its latest quarter. The US comparable sales dropped 2.6 percent.
The analysts on average have made estimates of a 1.8 percent decline in the global same-store sales of the company and a 2.1 percent drop in the US.
McDonald’s said that its global comparable sales for April are expected to be negative.