(Bloomberg) -- McDonald's Corp. is promising to recruit and train a more diverse set of franchisees across the world, adding more minority and female owners in the U.S., according to an internal message viewed by Bloomberg News.
McDonald's will be more inclusive in finding and training possible franchisees both in its home market and in international markets such as Germany, the U.K. and France, Chief Executive Officer Chris Kempczinski said in the message Wednesday. The company will provide $250 million to help finance loans for underrepresented groups including Black, Hispanic, Asian and female potential restaurant owners over five years in the U.S., he said, noting that costs to buy a restaurant are often an especially difficult barrier for candidates with diverse backgrounds. The loans are for new franchisees.
Companies are increasingly being called to task following the murder of George Floyd Jr. last year that sparked nationwide protests and a closer look at inequities. Already, Chicago-based McDonald's has said it's boosting minority representation in leadership, and tracking and sharing those efforts to improve equality. In July, the company pledged to boost spending with suppliers owned by women and minorities domestically.
Read more: How top employers stack up on diversity
Bloomberg's accountability tracker, examining how S&P 100 companies are doing on diversity, found in October that McDonald's was one of a few corporations performing well in most major racial categories and in the representation of women in its executive ranks. Still, the company has faced a number of lawsuits in recent years from Black McDonald's store owners, including one where franchisees of Tennessee restaurants accused the company of discrimination and setting them up to fail in crime-heavy locations. The company is defending itself against the allegations.
As of 2020, more than 29% of all U.S. franchisees were from underrepresented groups, including Asian, Black and Hispanic owners, McDonald's said. Meanwhile, women made up almost 29% of domestic store owners. In its U.S. efforts, McDonald's is using community groups to identify and reach qualified candidates of different backgrounds. Internationally, the efforts are underway already, the company said.
McDonald's rose 0.2% to $260.51 at 1:15 p.m. New York time on Wednesday. The shares had gained 21% this year through Tuesday's close.
©2021 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
