There is a Bloomberg news article today that totally mixes up Chef Crafted and CYT. I guess that's what we get when we go in ten different directions at once.
If they think MCD is fixed they are sadly mistaken and misinformed. Wall Street, in my opinion, doesn't really understand the burden of debt on the operators which is not reflected on any MCD financial reporting. However, without that off balance sheet debt which is for the sole benefit of the MCD Corporation MCD's financial picture would change dramatically. Wall Street fails to understand the corporate culture that allows a bureaucracy to be at least twice the size that it needs to be. The compentency level of the regions has fallen to depths never known in the past. Operationally, the stores are dragging a heavy load of debt, oversized menu and direct and smarter competition at the local level. MCD won't be fixed until sales return and begin growing and the company internal operating cost is reduced.
More like the "fix" is in.
Post a Comment