McDonald’s To Replace Cashiers With Kiosks, Wall Street Rejoices
As minimum wage starts rising, companies will be looking for other avenues to cut the cost of operations. Look no further to the burger giant, McDonald’s, to be at the forefront of the future of fast-food ordering.
On Tuesday, McDonald’s plans to replace cashiers in 2,500 of its restaurants with automated (digital) ordering kiosks were brough to light. Wall Street viewed the move as extremely favorable for the chain and shares of the company hit an all-time high in the process. McDonald’s will be rolling out mobile ordering to its 14,000 US locations before the end of 2017. They call the technology upgrades as part of their “Experience of the Future,” of which includes the digital kiosks and will include table delivery. We fancy now?
Analyst Andrew Charles from Cowen has raised his same store sales growth estimate in 2018 from 2% to 3% for the Big Mac maker. Not only that, he raised the company’s price target from $142 to $180 and also raised its earnings-per-share forecast from $6.71 to $6.87 where the consensus from Wall Street sat at $6.83.
With these changes, will you see yourself going to McDonald’s more or less? As long as these kiosks allow for outrageous combinations, it doesn’t have to be a bad thing.
One thing for sure though, the future is here.