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Remodeled McDonald’s Stores Drive More Sales

Posted on | May 24, 2011 | Comments Off

McDonald’s Corp (MCD) is working on redesigning, remodeling and even in some cases, rebuilding many of its US stores.  US stores generate almost half of the company’s profit, so growing this division is key to continued profit growth.

McDonald’s plans to remodel stores into better layouts that encourage consumers to stick around longer as well as double drive-thru lanes that encourage more traffic.

As reported by WSJ,

a trial batch of remodeled stores saw sales rise 6% to 7% faster than the company average in their first year.

Same store sales growth in the US has been growing about 1% annually and this could help McDonald’s continue this or expand the growth rate.  Franchisees which own about 90% of the stores in the US help foot the costs of upgrades and remodels.