A new McDonalds deal has put the company in a tough position in the face of increasing competition.
In an effort to attract more customers and bolster profits, McDonalds announced last week that it would acquire the parent company of fast-casual burger chain Wendy’s.
The deal was expected to close by late summer.
In a conference call last week, McDonald’s CEO Steve Easterbrook said that he had reached a “sweet spot” with the new deal, which he called a “multi-year” investment.
“I think that McDonalds has made some pretty good strategic moves,” he said.
“It’s hard to imagine it would be a more strategic investment.”
The company also said it would buy back some of its stock, and has agreed to pay an $18 billion dividend.
McDonald’s has also agreed to sell a significant number of restaurants and will close about 4,300 locations.
But the deal still has its share of hurdles.
McDonalds said it had been able to negotiate a price that was lower than some other companies.
That could mean the deal will cost more than McDonalds thought it would.
McDonald is also paying an $8 billion price tag for Burger King and has yet to finalize an agreement with Burger King about the future of its other businesses.