Are McD O/Os being sold out?
Shareholders are expecting too much growth out of this 60 yr. old commpnay. If McD was a growth company we would actually be seeing sales increases out of our rebuilds and NRBES.
It sounds silly to say this but MCD can't handle success any longer. They have a nearly seven billion dollar annual free cash flow. Thus, they don't have to be smart as in the past. They are not focused on the business of sales and profits. They think they can now focus on the "nice to do" things like being politically correct, letting hedge funds own the real estate, giving big promotions to friends regardless of competency, ect. Business principles in the regions are non-existant. It is the worst I've seen ever. The real problem is that they don't care. They are all over staffed and all they care about is their next promotion. An active Investor could be a good thing by jerking the company to attention and forcing them to perform.
Be careful what you wish for - activist investors rarely do anything to improve the efficiency and operations of a company.Activist investors are often like pirates who come aboard, take everything of value, and leave your ship burning and adrift. One of the reasons McDonald's did well during the Skinner years is that some of the major QSR competitors were being bought and sold by activist investors. Activist investors are not super-talented managers, they're financial engineers.
MCD management are neither.
You got to give these activist investors credit, they are smart people and my fear is that they could very easily out smart the oak brookers and the board of directors and have way to much influence on our future. Fred Turner warned us about these people 30 years ago.
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