October 18, 2013

McDonald's Needs MORE Innovation?

McDonald's Operators won't like this WSJ article but I'm posting it in hopes of generating 
some communications between a particular Wall Street analyst and a few outspoken people in the Operator community.

Michael Kelter at Goldman Sachs continues to criticize McDonald's for not having enough 
"innovation". This during a period when McDonald's USA is launching a new product or an
LTO every 60 days!

I'm suggesting that a few McDonald's Operators reach out to Michael and explain to him 
what innovation is doing to the capacity of the McDonald's restaurant operation.

Analysts are always eager to communicate with McDonald's Operators. Confidentiality?
there is no conceivable reason why an analyst would reveal the identity of one of their 
sources. They'll want to keep the communications flowing over time. I just wouldn't use 
the Oak Brook E-mail system.

Michael's E-mail is:  Michael.Kelter@gs.com

Here's the Wall Street Journal article

Some of his previous comments



Anonymous said...

Yes, but not on the food side. The corporation needs to innovate, and they should invest some of their savings into the infrastructure, and not lean on the Operators. They should have money. The Corp should help the cash strapped Operators with employment subsidies to lift the talent, and silence the critics. Only MCD could pull this off, and in the process sink traditional competitors b/c the experience is so much better. All the QSRs have the same food, but you can differentiate on People, to provide better customer experience. We need to beat Chick Filet on experience.

They should also invest in and pay for the in store equipment needed in all the US Stores to run the new Mobile Ordering that is in testing. The Corp should bear this expense, not the OOs. The Corp needs to pull some aggressive go getters from Silicone Valley and make MCD tech savy and hip, and appeal to the millennial.

Richard Adams said...

Most of the time, when analysts talk about innovation, it comes down to food or a new product line. Occasionally they're talking about extensive remodels.