raising prices for items above $1 in order to maintain margins."
Burger Business reports HERE
June 29, 2012
Wendy's Changing 99¢ Menu
"Pricing for the 99¢ value menu has gotten out of control, with many franchisees
raising prices for items above $1 in order to maintain margins."
Burger Business reports HERE
.
raising prices for items above $1 in order to maintain margins."
Burger Business reports HERE
Strange McBedfellows II
In this political environment we suggest McDonald's franchisees take another look
at how their political contributions are being spent.
Revisit our posting on this issue here
.
at how their political contributions are being spent.
Revisit our posting on this issue here
.
June 28, 2012
June 27, 2012
June 25, 2012
McDonald's or Burger King? Ask Jim Cramer...
I'm loving this ... CNBC's Jim Cramer comments on Burger King's expansion plans. He states:
"Burger King clearly knows how to play the trading game. They just put out a release saying they are going to build 1000 stores in China.
What a great way to juice a stock since you don't actually have to build them.
You just have to talk about them."
You just have to talk about them."
Thanks for telling the truth Jim!
CNBC video is HERE
.
June 23, 2012
Burger King, the Cash Cow
In my humble opinion - in five years we will no longer be referring to Burger King
as a major player in the QSR industry. Here's the history of the "financial engineering"
that is destroying that company.
>>> The New York Times Comments
“Burger King has had 13 chief executives in 25 years"
.
as a major player in the QSR industry. Here's the history of the "financial engineering"
that is destroying that company.
>>> The New York Times Comments
“Burger King has had 13 chief executives in 25 years"
.
Naperville Rejects Plan for Downtown McDonald's
How quickly these suburbs forget! When I worked for McDonald's almost everyone who worked in Oak Brook lived in Naperville.
Their sales and property taxes probably built Naperville. Maybe McDonald's employees now make too much money to live in Naperville?
Naperville rejects plan for downtown McDonald's - chicagotribune.com:
.
McDonald's Headed To $98 Showing Growth Despite The EU
We've repeatedly discussed the fact that that few people who are supposedly
knowledgeable about the Quick Service industry understand how much the warm
winter of 2011 / 2012 helped same store sales. The analysts who published the
article below are making their projections on USA sales based on the first five
months of this year. Of course, the first three months delivered increases in the
high single digits. Many of our analyst friends are in for a surprise.
Click Here >>>McDonald's Headed To $98 Showing Growth Despite The EU Crisis -- Trefis:
.
knowledgeable about the Quick Service industry understand how much the warm
winter of 2011 / 2012 helped same store sales. The analysts who published the
article below are making their projections on USA sales based on the first five
months of this year. Of course, the first three months delivered increases in the
high single digits. Many of our analyst friends are in for a surprise.
Click Here >>>McDonald's Headed To $98 Showing Growth Despite The EU Crisis -- Trefis:
.
June 22, 2012
June 21, 2012
June 20, 2012
June 19, 2012
Store Wars With Burger King?
Today McDonald's execs presented at an investor
conference admitting
that customer traffic will be difficult to grow
near term. So, if they can't
make investors happy with increased
same-store-sales it's necessary
to increase the number of outlets.
Management announced they will open 1,300 new
stores in 2012. How
does that compare to recent years?
Here's the global and USA rate for the past four
years:
2008 - 590 (56 USA)
2009 - 511 (62 USA)
2010 - 259 (47 USA)
2011 - 773 (71 USA
These are the number of stores operating at year's
end so it includes the
net of openings less closings. We assume the
1,300 discussed by
management is an increase in the total numbers of stores operating.
Hopefully very few of these new stores will be in
the over saturated USA.
.
Not Enough Company Stores?
“Too many franchisors are bailing out on running
the company restaurants
‐ John Hamburger, Restaurant Finance Monitor, May 22, 2012
and that is going to be a problem down the
road. Maybe it coincides with
so many deal guys getting into
the restaurant business. A deal guy can’t
tell a grease trap from a mop
sink, but sure knows that collecting royalties
is better than paying
them”
‐ John Hamburger, Restaurant Finance Monitor, May 22, 2012
.
June 18, 2012
June 16, 2012
Burger King Eyes China Expansion
Burger King tries to impress investors in their IPO
McDonald's tried this same stunt in the late 1990s,
it did not work out so well.
.
June 13, 2012
McDonald's Downgraded - Goldman's Not Lovin' It
"arguing that while the company is still “best-in-class,” and shares have actually
underperformed this year, it sees better opportunities in Starbucks and Chilpolte."
McDonald's Downgraded; Goldman's Not Lovin' It - MarketBeat - WSJ:
.
underperformed this year, it sees better opportunities in Starbucks and Chilpolte."
McDonald's Downgraded; Goldman's Not Lovin' It - MarketBeat - WSJ:
.
June 10, 2012
Since we use plastic on every visit to McDonald's it shouldn't be a surprise that the
percent of
business going to credit cards has gotten so high. While accepting credit cards is a
modern necessity McDonald's Operators should remember the origins of the credit card fees they
pay.
Most McDonald's watchers doubted Jack Greenberg
would finish 2002 as the company's Chairman and CEO, apparently
including Greenberg. During
that year he and others in the treasury department began negotiations with First Data Corporation to
handle McDonald's credit card program. At the time First Data
was a publicly
held company.
Most McDonald's franchisees who shopped around were
able to beat the fees charged by First Data but were forced
into the corporate approved program with zero
options.
Jack Greenberg "retired" from McDonald's in
December of 2002 and in 2003 he was named to the board of directors of
First Data Corp.
During the time Greenberg served on the board First
Data owned the Western Union company. In 2006 Western Union
was spun off as a separate public company and Greenberg left
the First Data board to be installed as chairman of the new
Western Union (WU).
And that's the history of your credit card fees.
Comments can be directed to my private E-mail address.
Comments can be directed to my private E-mail address.
.
June 8, 2012
June 6, 2012
June 1, 2012
McDonald's Equity "Sweet Spot"
Most McDonald's Operators have seen a recent brochure advertising
three stores
for sale.
for sale.
I've argued for years that there is much more to
pricing McDonald's stores than cash
flow ratios.While not passing judgment on
the asking price of these stores this package
does have a "Sweet
Spot".
The "Sweet Spot" is the length of the remaining
franchise terms (12 yrs, 10 yrs, 14 yrs).
These years give a buyer some time to
justify required reinvestments triggered by the
sale before having to worry about a rewrite.
.
.