McDonald’s Corporation (NYSE:MCD) would be open on Christmas

by Fiona Gabriel | Wednesday, Dec 19, 2012 | 374 views

McDonald’s Corporation (NYSE:MCD) is forcing its franchises to open on Thanksgiving in order to enhance its sale. Its sales were up by 2.5% in the current month after a drop by 2.2% last month. Not only on Thanksgiving but McDonald’s Corporation (NYSE:MCD) is pushing its franchises to open in all traditional holidays in which generally its competitors are closed. Come Christmas, McDonald’s Corporation (NYSE:MCD) wants all its franchises to be opened on this holiday.

According to the Nov. 8 memo from McDonald’s Corporation (NYSE:MCD) USA Chief Operating Officer Jim Johannesen, they want their outlets to be opened on all the holidays with a view to earn a better revenue in terms of sales. An average sale of $5,500 last year for the restaurants that opened on Christmas was observed.

According to a second memo, dated Dec. 12, Mr. Johannesen, had fixed average sales of company owned restaurants at $6,000 this Thanksgiving. But the people close to the company said that around 6000 more locations were open on Thanksgiving in comparison to last year Estimating that these locations are on par with the company owned stores the additional sale is adding up to a whopping $36 million.

If all the franchise those opened on Thanksgiving, would open on Christmas also the sale will jump to $72 million in the 4th quarter. Or else if Santa grants any corporate wish for the company than their sale will touch $84 million this year. The franchises opened on Thanksgiving were entitled for almost 1% point for the companies 2.5%.

The company is displaying itself as more customer oriented and according to the executives their restaurants will be open to serve their customers when and how they need over the holidays.

The McDonald’s Corporation (NYSE:MCD) franchises are not happy with the plan to open on all the traditional holidays such as Thanksgiving and Christmas day. Before 15 or 16 years some franchises had started opening on Thanksgiving. Recently 5 to 6 years ago no one even thought of remaining open on Christmas although some stores did stay open on Thanksgiving. After its sales decline in October, McDonald’s Corporation (NYSE:MCD) does not want to skip any plan to increase its sales. The company also tried a new current year’s plan to open for long hours to enhance sale but it worked adversely and the sales declined.

The company is focused on enlarging sales but not giving attention to their staff forces. In company-owned restaurants also when the staff voluntarily sign up to work, they are not even entitled a regular overtime payment by the company. It experienced a good gain in November for the well performance of beverages and breakfast plan. The limited-time ‘Cheddar Bacon Onion’ sandwiches is demanded by the customers.

The share price of McDonald’s Corporation (NYSE:MCD) were up by 0.68% to close at $90.52.

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