McDonald's (MCD) benefits from the robust loyalty program, menu innovation, expansion efforts and global comps growth. However, high costs hurt.
McDonald's is ending a two-year experiment, conducted with IBM Corp., for drive-through, automated order taking, or AOT, and will remove the technology, following some mishaps at the more than 100 restaurants using it.
24/7 Insights McDonald's Corp. (NYSE: MCD) wants to cut labor costs to improve profits and its share price.
In the most recent trading session, McDonald's (MCD) closed at $253.51, indicating a -0.03% shift from the previous trading day.
MCD now features a dividend yield that's near peak levels in at least 5 years, indicating attractive valuation. But on the negative side, I am seeing high food price inflation as a key profit headwind. It is impacting both consumer spending and MCD's menu prices, both could decrease customer flow.
Companies have touted AI as future of the industry, but technology has also resulted in viral videos of wrong orders
After two years of testing, McDonald's has ended its partnership with IBM to develop an artificial intelligence (AI)-powered drive-thru system. The collaboration, which aimed to change the fast-food ordering process by replacing human workers with voice-activated chatbots, had been a closely watched experiment in the industry.
Angry customers reported glitches with the new technology -- including one who says the machine added nine sweet teas to her order.
McDonald's is removing its Automated Order Taker technology from over 100 restaurants. The food chain collaborated with IBM in 2021 to develop and deploy the AI software.
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Some may call it corporate greed, and some may buy the media message, but the truth is that fast food isn't cheap or quick. This CNBC short documentary covered some of the factors behind fast food price increases.
McDonald's has achieved 13 straight quarters of revenue growth, despite high inflation hurting consumer spending. The fast-food chain plans aggressive expansion, with a goal of reaching 50,000 global restaurant units by FY 2027. McDonald's is a 'Dividend Aristocrat' with consistent profitability and potential for dividend growth.