September 7, 2012

Caution - Sales Bump Ahead

This chart from a recent Hedgeye note on McDonald's illustrates the hill that McDonald's
and other chains have to climb this winter. The blue is the past 12 months and the red is
an average of the past two years. Of course the highest increase was in February partially
created by a 29 day month. (For a larger picture click here) >>> Hedgeye Chart


1 comment:

Anonymous said...

Cash flow is a big concern. We need to take a look at our long term cash flow strategy. Costs are rising in all areas of the business. We no longer have a gross profit margin of 70%.
Food cost is rising and paper has risen close to a half a percent. We are expected to absorb numerous fees and price increases in the areas of cashless, technology, warranties, upgrades, PMs Etc.