McDonald’s is getting a lot of love on Wall Street, as the fast food giant begins to cut back on cashiers and expand on Kiosks that take your order for you.
What is bad for the working class seems to be great for business, at least this seems to be the case for McDonald’s. CNBC reports that the fast-food behemoth is projected to see its shares rise from $142 to $180.
As McDonald’s announced they would be adding more Kiosk to replace cashiers in over 2,500 restaurants, the people on Wall Street went crazy and McDonald’s shares hit an all-time high. The fast food franchise also announced they would be getting mobile ordering to over 14,000 U.S locations by the end of 2017. This technology push is something McDonald’s is calling “Experience of the Future.” Andrew Charles from Cowen spoke on Mcdonald’s new tech roll out:
“MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery,” Charles wrote in a note to clients Tuesday. “Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].”
McDonald’s is moving in a direction that seems to have shareholders excited, while at the same time drawing in new shares. Moving more tech in always brings up the question of human labor, and what it means for people that do the jobs that these machines are essentially going to be doing. A spokeswoman for McDonald’s issued a statement addressing this concern:
“Our CEO, Steve Easterbrook, has said on many occasions that self-order kiosks in McDonald’s restaurants are not a labor replacement. They provide an opportunity to transition back-of-the-house positions to more customer service roles such as concierges and table service where they are able to truly engage with guests and enhance the dining experience.”
Only the future can tell how true that statement actually is. Maybe machine and the working class man can coexist, and this will be as good for the employees as it is for the suits on Wall Street. Skynet much?