I have been informed that there are members of the
McDonald's SET team who take the position that
Operator equity has improved and is better than it
was five years ago.
To believe this one must depend entirely on information
and philosophy provided by Oak Brook bean counters.
"Cash flow" as computed by McDonald's Corp. has little
to do with the value of your stores. It doesn't address
marketability, reinvestment, Co-Op situations, livability,
and tortious interference my McDonald's, etc.
For one thing - the measurement should not be "equity
as compared to five years ago" but equity as what it
should be at this time. It should be - what would your
equity be if changes in corporate policies over those
five years had not demolished the value of stores?
Anyone who thinks that equity has improved should
not be sitting on committees with such responsibility.