00:00It's Benzinga, bringing Wall Street to Main Street.
00:02McDonald's stock fell nearly 6% Wednesday after the fast food giant outlined new long-term
00:07growth and profitability targets while acknowledging gaps in restaurant execution,
00:11according to Benzinga. The company is targeting an operating margin in the low to mid 50% range
00:16and free cash flow conversion in the mid to high 80% range by 2030. It's McDonald's next strategy
00:22focuses on menu improvements, consumer personalization, restaurant modernization,
00:26and hospitality. McDonald's expects the strategy to deliver about 250 basis points of gross
00:32restaurant-level efficiency gains and roughly $100,000 in annual cash flow benefits for the
00:38average U.S. restaurant. The company also plans about $8.5 billion in next partnering support
00:43through 2036. CEO Chris Kempzynski said growth would remain flat as accelerating inflation weighs
00:51on the company. Shares fell 5.58% to $236.38 at the time of publication on Wednesday,
00:58reaching a new 52-week low, according to Benzinga Prodata. For all things money, visit Benzinga.com.
