---
title: "McDonald's Turnaround to Include Refranchising"
url: https://burnaze.com/article/8959fb81-2ba7-4076-be23-98d3ddeed7c5
source: "1851 Franchise"
original_url: https://1851franchise.com/mcdonalds-turnaround-to-include-refranchising-2865
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A","Development & multi-unit"]
published: 2015-11-12T20:15:41.000Z
modified: 2026-11-01T18:03:03.259Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/0e5e27538e5786aead9e737612edb83d3617151112153541.png
---

# McDonald's Turnaround to Include Refranchising

**TL;DR:** McDonald's plans to increase its franchise presence as part of its turnaround strategy, aiming to refinance its franchisees and raise its net annual general and administrative expense savings goal to $500 million. The company intends to refranchise 4,000 restaurants by 2018, with a long-term goal of being 95 percent franchised.

*originally published in 1851 Franchise on 2015-11-12. [Read the original](https://1851franchise.com/mcdonalds-turnaround-to-include-refranchising-2865).*

## Story

McDonald’s Corp. announced Tuesday during an investor meeting that it intends to increase its franchise presence as part of its comprehensive turnaround plan.

Following a disappointing performance in 2014, the famous fast-food brand is raising its net annual general and administrative (G&A) expense savings goal to $500 million with intentions of meeting expectations by the end of 2017. The new target is 20 percent lower than expenses at the beginning of 2015.

McDonald’s believes these savings will come in part through refranchising efforts. Initial plans called for the refranchising of 3,500 restaurants, but it has now raised expectations to 4,000 by 2018. This is part of a long-term goal of being 95 percent franchised, the majority of which will happen in the High Growth and Foundational Market segments.

Brand CEO Steve Easterbrook said during the meeting that the goal is to redirect McDonald’s to ensure a promising future.

“Our turnaround depends on this: We must run great restaurants each and every day,” Easterbrook said according to QSR Magazine. “We're leveraging our competitive strengths: iconic menu items that customers love, a unique franchise model that empowers local entrepreneurs, size and scale that makes operational investments efficient, and a global, well-diversified geographic footprint. Together, these brand attributes provide McDonald's with the foundation and capabilities for continued success.”

## Entities

- 1851 Franchise (publication)
- franchise expansion (topic)
- Franchise Industry (sector)
- McDonald's (company)
- refranchising (topic)
- turnaround strategy (topic)
- expense savings (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/mcdonalds-turnaround-to-include-refranchising-2865). Summarized by Burnaze (https://burnaze.com/article/8959fb81-2ba7-4076-be23-98d3ddeed7c5).