McDonald’s investment initiative aims to fuel growth and support franchisees that have been hardest hit, says CEO.
McDonald’s CEO, Chris Kempczinski, has announced a three-part investment program, with an overall objective to “accelerate recovery, return to growth, and maintain the competitive advantage that has played such an important part in McDonald’s success”.
In response to the outbreak of COVID-19, McDonald’s had already provided financial assistance to franchisees, which included $1 billion short-term liquidity support, which the franchise announced in late April.
The new global initiatives, announced by Kempczinski in a video, deploy a significant incremental investment to accelerate franchisee recovery, which the organization hopes will enable its network to return to growth and maintain its competitive advantage.
The three components of the program comprise:
- Corporate investment in marketing spend across the U.S. and internationally operated market segments equivalent to one month of co-op contributions (varies by market, approximately four per cent of pre-COVID systemwide sales) to accelerate recovery and drive sales.
- Targeted financial support to the hardest hit organizations in its system.
- Support for the unique circumstance facing organizations in certain markets, such as those operating delivery-only restaurants.
Here’s McDonald’s CEO Chris Kempczinski’s announcement in full:
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