McDonald's shifts expansion strategy in face of poor earnings
A Wall Street Journal story on McDonald's earnings results and strategy for next year:
Reporting an 11% third-quarter profit drop, McDonald's Corp. said it will open far fewer restaurants next year, funneling the money instead into its existing and sluggish U.S. restaurants.
...Jack Greenberg, chairman and chief executive, said the company will " dramatically reduce restaurant openings" to 600 additional McDonald's units world-wide in 2003, down from 1,050 this year and from a high of nearly 2,000 in 1996. In the U.S., it will add 100 McDonald's in 2003, down from about 300 to 350 this year.
The burger chain, with more than 30,000 restaurants world-wide, will reduce spending on new restaurants by 40% to $875 million in 2003. About $750 million is earmarked for new McDonald's restaurants, the rest for its other brands, including Boston Market and Chipotle Mexican Grill outlets.