November 11, 2015

McDonald's Analyst's Day

The dust from Tuesday's Analyst's Day has settled so for those McDonald's Operators interested in knowing more about management's plans for the future of the company ...

The take from NRN is HERE

Crain's Chicago Business reports HERE

Yahoo Finance recaps what the analysts are saying HERE

A replay of the webcast is HERE

The Q&A with the analysts is always the most interesting part of the webcast.

November 10, 2015

Investors Impressed With MCD - And Then They Weren't

McDonald's Operators Can Breathe Again

McDonald's management says they will not form a REIT.

McREIT or not to McREIT

McDonald's Operators may hear some discussion from today's analyst meeting about
doing something with the McDonald's real estate empire in the form of a Real Estate Investment Trust. While having a third party influencing the real estate side of the 
franchise relationship would be disastrous for McDonald's Operators - not to worry.

The ongoing activities of the supplier owned REIT - System Capital Corporation - will
prevent any real transparency into McDonald's real estate and the topic will fade 
away as it always has.

November 7, 2015

McDonald's Is Poised to Rule Fast Food Again

Much of this is a rehash of survey comments but it's always cute when a PR person 
speaks for the entire Operator community from her cubicle in Oak Brook. 

"We’re working to turn around our business with the support of our 3,100 independent 
franchisees, who are excited about sales drivers like all-day breakfast (which they 
overwhelmingly passed in a strong majority vote)," McDonald's spokeswoman Heidi 
Barker said. "We understand that they are reassured by our willingness to co-invest in 
future growth drivers."

Edward Jones analyst Jack Russo says: "There is change taking place and he franchisees 
don’t like that," Russo said. "McDonald’s is asking them to reinvest back in their 
business, in wages and labor, and they are not happy about that. But change had to 
happen at the company and they’ll be happy again at some point."

McDonald's Is Poised to Rule Fast Food Again - Business Insider

November 3, 2015

Only The Government Thinks We Care About Calorie Counts

Studies: Putting calories on menus affects restaurants more than consumers

There's Nothing Fast About Fast-Casual Restaurants

I've made more than my usual number of visits to "fast-casual" restaurants this fall. 

If one listens to the business media you'd think that Americans were flocking to 
Five Guys, Chipotle, and other non-QSR restaurants by the millions leaving 
McDonald's and Burger King locations vacant.

Maybe there's some of that happening if only because, as compared to a decade ago, 
there are a lot more fast-casuals out there. But it appears that fast casuals have put
huge limitation on themselves - the service and wait times are atrocious. 

I submit there are only a limited number of customers who will stand around waiting 
forever for their food. This leaves a huge competitive advantage for traditional QSRs 
because there are millions more customers who will forgo slow food for a quick grab
and go in the drive-thru or at the counter.

Any QSR brand that thinks they can drag those drive-thru customers inside to stand
around waiting for ten minutes after ordering does not understand their customers.

The felony dumb statement of 2015 was uttered from Oak Brook IL when a McDonald's spokesperson said, about Create Your Taste, "If they know we're making it especially 
for them people don't mind waiting".

There are a few such customers out there but not enough to justify destroying a 
restaurant system by being a copycat.