Facing slow sales growth numbers, executives with McDonald's Corp. (NYSE:MCD) held a hastily arranged meeting last week to develop a plan to boost sales through upgrading older stores and introducing a new $1 menu.
According to franchisees in attendance, McDonald’s plans to refurbish restaurants in the United States which are more than 15 years old.
Although about half of all domestic restaurants already have a dollar value menu, corporate executives have proposed a nationwide menu of 10 items priced at $1.
The plan has met with some criticism from franchisees and analysts. According to Reuters, Lehman Brothers analyst Mitch Speiser describes the measures as desperate, especially given the hurried nature of the meeting and proposed changes. In a letter to clients, he warned of lower average check per customer numbers and profit margins.
The plan, which was endorsed by McDonald's Owner/Operator leadership at the meeting in Las Vegas, must be approved by a vote from individual restaurant owners.