NEW YORK (TheStreet) -- McDonald's (MCD) shares are down 1.23% to $96.61 in trading on Monday following the unveiling of the fast food restaurant's restructuring plan that is designed to improve the company's diminishing sales.
However, investors and critics alike seem to have rejected new CEO Steve Easterbrook's plan to transform the company into a more efficient and modern company. Easterbrook said that the company plans to produce $300 million in annual savings by 2017 in a video announcing the plan today.
"The immediate priority for our business is restoring growth under a new organizational structure and ownership mix designed to provide greater focus on the customer, improve our operating fundamentals and drive a recommitment to running great restaurants. As we turn around our business, we will look to create more excitement around the brand and ensure that we build on our rich heritage of positively impacting the communities we serve," said Easterbrook.
The company also announced plans to refranchise 3,500 restaurants by 2018, increasing its global franchise percentage to 90% from 81%, while the company also plans to return between $8 billion and $9 billion to shareholders this year.
Standard & Poor's downgraded the company's credit rating to A- from A in response to the potential $9 billion cash return the company has planned for this year.
TheStreet has further coverage of McDonald's new plan here.
TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: