Franchise Equity Group
July 17, 2025
July 16, 2025
3 Reasons to Separate Corporate CEO and Chair Positions
Numer One: "..... it is the board of directors that votes to increase executive pay. Accordingly, when the CEO is also the chair, a conflict of interest arises, as the CEO is voting on their own compensation. Although a board probably includes some members who are independent of management (as required by legislation), the chair/CEO can influence the activities of the board, which allows for potential abuse of the chair position."
July 15, 2025
July 13, 2025
The Menu Creeps
How big can the McDonald's USA menu get?
Many factors contribute to the growth of McDonald's menu. The top two are:
The business news industry: It's boring trying to write about the restaurant industry. The only interesting hot topics are new products.
Wall Street analysts: An analyst's job is to keep track of the activities of certain companies or entire Industries. That means keeping up with new products or concepts, whether it's automobiles, pharmaceuticals, or farm equipment. It's then the analyst's job to translate these changes into EPS projections.
If a restaurant company fails to impress Wall Street with new products, analysts will report that the headquarters lacks "Menu Innovation." New products are as much to impress Wall Street as they are to attract paying customers.
" McDonald's execs believe menu innovation is the key to turning around their sagging sales—so much so that they mentioned it 14 times during their May earnings call. "...There's a steady flow of menu innovation that goes from now through the end of the year in a number of our markets," CEO Chris Kempczinski said. "...Our expectaion is, as we continue to have more menu innovation...it has a positive impact on baseline, which is sort of the gift that keeps on giving."
July 11, 2025
Caution: New Stores Ahead
McDonald's USA to open 900 new stores by the end of 2027
Please note the first comment on this post.
July 9, 2025
At the Risk of Seeming Picayune, ...
The metaphor "Three-Legged Stool" is typically used to describe a mutually beneficial relationship, a type of quasi-partnership. At least that was the way Fred Turner used the term.
July 6, 2025
Everybody Wants to Buy McDonald's in Israel
It's my guess this article is 95% gossip and/or fabrication, but the last sentence in the following paragraph caught my eye.
"The process of seeking a franchisee is being handled by a local representative on behalf of McDonald’s, who has approached well-known business figures in Israel, in parallel with direct approaches received by McDonald’s Global. Interested parties have signed confidentiality agreements. Among them: Ori Max, owner of Maxstock under Apax Partners; large real-estate and mall groups; and a group of McDonald’s executives who are exploring the formation of a consortium."
Battle for McDonald's franchise in Israel heats up - ynetnews
What McDonald's Says About the Economy
McDonald's to hire 375,000 people this summer
That's about 25 employees per store, the spring and summer hiring trend that goes back about 70 years.
However, if McDonald's corporate opens "another 900 U.S. restaurants by 2027" there may be fewer employees per restaurant due to cannibalization.