March 20, 2018

Fake News About Fake Science

With all the challenges McDonald's 
faces in the future - this politically 
correct  garbage will keep the system 
from growing.

And bringing in Obama's anti-business henchmen will only distract from the 
real world of sales and profits. >>>>>

Maybe they'll have Al Gore address 
the Orlando convention?

On the menu for McDonald’s: Cut greenhouse gas emissions - AP

March 17, 2018

Franchisees Push Back

Amid industry challenges, franchisees get serious about protecting their profits

The NLRB Saga Goes On

Sen. Elizabeth Warren is all in with destroying the USA franchise industry yet, if she ever runs for POTUS,  a 
large number of McDonald's corporate employees and executives will gleefully support her. And the Operator 
PAC will send her money.

Labor Board Scrambles to Avoid Pro-Worker Ruling, Lawyers Claim - Bloomberg

March 14, 2018

McDonald's Accountant Talks Operations and Marketing

On Wednesday McDonald's CFO presented at a Bank of America Conference. This comment 
appears to be gibberish. Is this some kind of McNewSpeak? 

I understand incremental sales, I understand break-evens and contributions margins.

"And so on a margin percentage basis, the franchisees get a lower margin percentage on 
this sale than they do if someone came to the front counter because the added cost is this commission. But in terms of additional dollars, the fact that 70% incremental is giving 
them clearly more dollars and our breakeven, if you will, incrementality is substantially 
below 50%. So there's a lot of room, let's say before we get anywhere close to breakeven 
from an incrementality standpoint."

Here's a transcript of the presentation:

McDonald's Management Presents at Bank of America Consumer - Seeking Alpha

March 13, 2018

McDonald's USA Increasingly Complex Operations

McDonald’s Tech Features Are Pushing Human Workers Out the Door - Bloomberg

McDonald's to Make Quick Changes to Value Menu - RBC

Analyst David Palmer is out with expanded comments on the McDonald's value platform.
Here's an excerpt from his report.

"So what now for McDonald’s? In our view, McDonald’s will likely stay committed to the
$1, $2, $3 menu with some other marketing adjustments that will be supported by its 
made-to-order fresh beef burger launch. While value remains a key pillar in the US 
turnaround—there are others including ongoing food upgrades, a massive reimaging 
campaign, and improving convenience (mobile order and delivery). McDonald’s is asking
for significant investments and has a new grading system that is designed to bolster in-restaurant execution, which may result in fewer, better franchisees in the system."

Trouble is, the people deciding on who's a "better franchisee" know very little about what 
it takes to be successful in McDonald's.

McDonald's (MCD) Expected to Make Quick Changes to Value Menu - RBC