November 5, 2019

From Today's Wall Street Journal

"The typical McDonald’s restaurant in the U.S. generated about $360,000 in cash flow annually, an executive said in March, down roughly $30,000 from two years earlier. Franchisees have formed an independent association to press their interests.".....
"Mr. Kempczinski said in an interview Sunday that operators are enjoying a record year for cash flow. Average cash flow for franchisees has grown for 11 consecutive months through September, executives said last month."
(subscription required)

A Small Fraction of the Avalanche of McDonald's Articles

McDonald's CEO Shakeup Higlights Franchisee Battle - Business Insider

New McDonald's CEO Has Tense Relationship With Franchisees - Crains

Another Executive Leaves McDonald's - Restaurant Business

October 29, 2019

Nightmare on Carpenter Street

Yes, last week was a rough one for McDonald's investors. I don't know what's going to happen with McDonald's share price but I can predict what the corporate suits are doing this week. They're in a panic to accelerate several initiatives.

Many Wall Street types and most in the business media are blaming the soft traffic numbers for McDonald's USA on two things.

1) The chicken sandwich wars (about to be amplified by Popeye's).

2) Lack of McDonald's fake meat products. Just because many other chains are adding fake meat sandwiches and the like it appears to be a national trend. It's not, but that's what's being reported.

So, McDonald's management will be expected to jump on these two bandwagons with both feet. Their deadline is the third week in January which will be the next quarterly earnings release and conference call with analysts. Management will be expected to report substantial progress on chicken sandwiches and fake meat.

And that's why we'll see management panicking. They have about eleven weeks to work their magic.

Unless of course,  McDonald's USA turns in some spectacular sales in November and December. If so management will be temporarily off the hook but will still be pressured on the above initiatives.

Meatless meat backlash - Vox

McDonald's expected to jump into chicken sandwich war next year - Marketwatch

Canadian fake meat hasn't been a blowout - Marketwatch