May 15, 2010

Honey, They Shrunk My Equity (Again)




In this Chicago Tribune
interview the McDonald's
bureaucrat in charge of
restaurant design claims
that only 400 to 500 stores
will be reimaged this year.

This does not include several hundred rebuilds/relocations.

That's a lot of Operator equity to drain out of the system
in one year.

But we must add the several thousand stores that are being
put into the rebuild pipeline via the rewrite process. Since
this applies to any building 25 years or older - how much is
a store worth after deducting $1.5 to $2.0 million from the
resale value?

Chi-Trib article is HERE

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May 3, 2010

A Word to the Pies



The third-generation owner of the Bama Companies has become a prolific writer and speaker on business issues. She speaks out against excessive CEO pay. No word on how she feels about Skinner making $18 million a year but considering she's a McDonald's supplier I bet she's OK with that kind of compensation.

Interview on FOX with Paula Marshall is HERE

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