If you ever ask yourself, how can McDonald's push for a
national roll-out of McCafe when the sales of specialty
coffee have bee so unimpressive?
The answer is that Oak Brook thinks on a chain-wide scale
with little regard for the individual store. This is the same
logic Deutsche Bank uses to place a conservative "Hold"
rating on Starbucks.
Deutsche calculates, based on test markets, that McDonald's
could sell 30-40 units/day. That's enough to hurt sales at
Starbucks on a national basis.
So it's not about profitability for the individual store - it's
about the brand - and attracting investors away from other
brands to buy McDonald's shares.
Deutsche Bank article is HERE