McDonalds at Bernstein Conference Notes

We have a number of legacy comparative advantages

“our iconic brand is clearly an advantage, we are one of the most, if not the most recognizable valuable brands in the world. Our size and scale makes us comfortably the biggest player in a highly fragmented $1.2 trillion global informal eating out category. Our geographical diversification gives us a broad base of markets with different economic and social conditions. And our franchising model is also a competitive advantage. Our independent local owner operators get us closer to the customers in the communities we serve and unleash more entrepreneurial spirit, risk taking and innovation.”

Next phase of the turnaround will be to strengthen and lead

“The next phase of the turnaround will be to strengthen and then to lead. I’m certainly energized by the opportunities ahead. We will be evolving the menu the right way, which will be balancing our core menu, new products and customization. And like we have done with McCafe around the world, we will be creating platforms that sustain and provide sustainable growth, whether that’s value, All Day Breakfast and digital strobe technology strategies.”

We see technology as an enabler and driver of growth

“We truly see technology as both an enabler and a driver of growth into the future, and as we look to the longer term, we really see technology as being an opportunity to really allow us to personalize the entire McDonald’s experience for our customers. ”

Redefining what it means to get customers what they want and when

“We are redefining what it means to get customers what they want and when they want it.”

Technology opens up new service paradigms

“Service to us is a huge opportunity, because technologies suddenly provides us with a whole range of ways that we can put more choice and control in the hand of the customers. So, instead of them having to fit around our business model, which is either line up at the front counter in a way that we prescribe or go for the drive in a way we prescribe. That’s really the only two service options we provided for 60-years.

In the next three to four-years, there could be another four or five different ways that customers can choose to order and you put control in their hands. That could be through, if it’s family with two young kids and you want to go to self order kiosks and take more time putting the family altogether and having some fun with that.

You can do it that way, you can maybe order ahead on your mobile App and save your favorites, and just scan it over the kiosk, sit straight back down and we will bring the food out to you. so it becomes a very seamless experience. So those we say, if we can enhance the customer experience, modernize it and make it either more fun or more convenient for customers, we see that as being another platform that gives sustaining growth.”

The order accuracy is going to shift markedly higher

” the order accuracy is going to shift markedly higher as there will be no miscommunication between the ordering and the person receiving order would be pre-order and it just goes straight into our operational system. So we see speed advantages, we see accuracy advantages, we see smooth and more relaxed customer experience, quite all pieces together that’s what we are working on.”

Over the last 60 years pretty much all good ideas have been generated at the market level

“the reality is over 61, 62-years, pretty much all the good ideas have been generated at a market level. That’s where we are closest to our customers, that’s where we are more nimble, that’s where the innovation happens and really our role in the center if you want to describe that, is to make sure we got the right talent in the markets just delivering that kind of incubation of ideas and nothing smart at the sport level.”

Our size puts strain on the supply chain when we make changes

” I think for a fair while we have used sometimes our size and our scale as a barrier to stop innovating as food, because of our size, the pressure we do put on not just the our supply chain, but industry as a whole sometimes when we make significant moves. Is huge, the supply can’t necessarily meet demand. I mean Cage-Free Eggs is a great example. So yes, we made a commitment, so over a period of time we will move to 100% Cage-Free Eggs simply because the supply isn’t there presently.”