Foodservice Equipment Reports

McD’s 2012 Plan To Win Includes $2.9 Billion Cap-Ex

McDonald's Corp. is boosting capital expenditures to $2.9 billion next year, opening 1,325 outlets and continuing the revamp of existing locations. The Oak Brook, Ill., company announced its 2012 plans Nov. 10 at an investor conference.

By the end of this year, the chain will have opened 1,100 new locations and recorded $2.6 billion in capital expenditures. The nearly 17% boost in 2012 new-unit openings includes plans for 750 stores in Asia, the Middle East and Africa, as well as 250 in Europe, 200 in the U.S. and Canada and 125 in Latin America. McDonald’s also intends to renovate 2,400 of its current locations.

McDonald’s CEO Jim Skinner said, "Over the past nine years the “Plan to Win” has been the right blueprint for McDonald's and remains relevant today. It has enabled us to perform well in both robust and challenging economic environments. Most importantly, the plan is supported by our unparalleled competitive advantages in size and scale, our financial strength and our system alignment.”

The Oak Brook, Ill, company’s strategy was underlined by CFO Pete Benson. "We are operating from a position of strength and now is an opportune time to accelerate new store openings and reimaging to modernize our brand. We have the financial resources and discipline to invest wisely, and given our strong returns we are increasing our capital expenditures to about $2.9 billion for 2012."