Coalition of Franchisee Associations

July 23, 2012

You Can See McDonald's Future From Here

For many years I've encouraged McDonald's franchisees to pay
attention to the quarterly conference calls between McDonald's
executives and Wall Street analysts. I don't think too many
took my advice.

But, today's call is significant because of the drought, foods costs
and competitive pressures. This call contains revealing comments
from management and some really interesting questions from the

If McDonald's Operators want a look into the next 18 months you
really should read the transcript of today's call. Or, you can listen
to the playback on the investor section of the McDonald's website.

Seeking Alpha transcript is HERE

CNBC - MCD to Go On Offensive on Value

This is an interview with an analyst who explains very succinctly
that McDonald's can win a price war because the franchisees 
spend so much money on advertising.

The McDonald's discussion is about four minutes into this 10
minute video, but it's worth the wait.

Rachael Rothman on McDonald's

Analysts - More Discounting at McDonald's

Some smart people quoted in this article.
Howard Penney, managing director of investment research firm Hedgeye Risk 
Management says: “McDonald's can't ever go back to the Dollar Menu.
It's permanently gone.”

Kate MacArthur reports for Crain's Chicago Business

McDonald's CFO Foresaw Drought

McDonald’s Bought Commodities Before Rally, Cuts Cost Forecast - Bloomberg:

McDonald's Rare Profit Miss Signals Slower Growth Ahead - Forbes

McDonald's Rare Profit Miss Signals Slower Growth Ahead - Forbes:

July 22, 2012

McDonald's of India to Lower Prices 6-15%

The last sentence in this article is profound:
"The move is line with the fast food giant's international positioning of value and affordability, with more stress on volumes than margins."

The Economic Times reports HERE

July 20, 2012

What's the Beef?

Burger Business Reports on Beef Prices

Chipotle Down

Friday morning most restaurant shares are under pressure because of poor earnings from Chipotle. Discussing commodities on CNBC an analyst from Raymond James quiped,

"Chicken is just corn with feathers"

News on Chipotle is HERE

July 19, 2012

It's Going to be a Hard Candy Christmas?

When announcing "disaster" areas due to the drought USDA Secretary Tom Vilsack
said: "ranchers were most seriously affected and he expects the prices of beef,
poultry and pork "may go down a bit, but over time they will rise."

In other words, restaurants may get some relief this summer but just about the time
the industry comes up against the tough comps caused by the warm weather of
winter 2011/2012 the corporate folks will be pushing for discounting and coupons to
keep same store sales from going negative.


Dow Jones Reports HERE

The Food Cost Maize

This article contains some interesting facts about  where the money goes when we buy groceries.

July 10, 2012

Growth Chains: Tom & Eddie’s (Ed Rensi that is)

Growth Chains: Tom & Eddie’s | Nation's Restaurant News:


Somebody Likes Being on Camera!

Why would the world's largest restaurant chain post their
proprietary recipes on YouTube ?

Next we'll see Coke reveal their contents and KFC
disclose the Eleven Herbs and Spices. 

>>>  The Oak Brook chef tells all