These downgrades are not good news. However, it doesn't reflect the whole story. MCD is moving aggressively to prevent investors from dumping the stock. So far it is working. Moody's is looking at the declining sales and fixed costs which MCD thinks can be fixed. There are several respected and big players on Wall Street that are making big bets on MCD. This, I think, is because MCD is sharing with them more about the turn around plans than they are with the general public and operators. Speculation is that major efforts are underway to fix the food and the marketing. Things like using real butter on the egg mcmuffin's, scratch biscuts, cooking beef from a thawed state rather than a frozen state. Putting the taste back into the food and ignoring the complaints of the food critics. Its about time. This, they claim, will increase quality and improve sales with better marketing along with making the menu board more manageable. However, Moody's is right to downgrade MCD. Right now investors are exposed and if things don't work out they lose. MCD created this problem for themselves and they are going to take their medicine until they fix it.
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These downgrades are not good news. However, it doesn't reflect the whole story. MCD is moving aggressively to prevent investors from dumping the stock. So far it is working. Moody's is looking at the declining sales and fixed costs which MCD thinks can be fixed. There are several respected and big players on Wall Street that are making big bets on MCD. This, I think, is because MCD is sharing with them more about the turn around plans than they are with the general public and operators. Speculation is that major efforts are underway to fix the food and the marketing. Things like using real butter on the egg mcmuffin's, scratch biscuts, cooking beef from a thawed state rather than a frozen state. Putting the taste back into the food and ignoring the complaints of the food critics. Its about time. This, they claim, will increase quality and improve sales with better marketing along with making the menu board more manageable. However, Moody's is right to downgrade MCD. Right now investors are exposed and if things don't work out they lose. MCD created this problem for themselves and they are going to take their medicine until they fix it.
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