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.


Anonymous said...

From the article <<<>>

Borrowing money to payout dividends is very foolish. It is simply to bolster the price of the stock artificially. Eventually debt must be repaid out of earnings. Not a smart move. Also, the Corp is hurting every Licensee by limiting our ability to borrow at preferred rates. Will the pressure to reinvest decrease in a less favorable operator borrowing environment? I doubt it. Shareholders win. Operators lose. AGAIN

Anonymous said...

S&P cuts McDonald's credit rating
Nov 10 2015, 15:30 ET By: Stephen Alpher, SA News Editor

Citing a sharply higher debt load thanks to just-announced plans to boost capital returns to $30B from $20B by the end of 2016, S&P cuts McDonald's (MCD +0.1%) to BBB+ from A-. The outlook is stable.

The agency figures the company's debt to EBITDA ratio will rise to the low-to-mid 3x range versus the previously expected mid-2x - maybe good for the stockholders, but not necessarily for the creditors.

Any capital returns beyond what's been currently announced would likely result in another rating cut, says S&P.
As for a credit rating increase, it's unlikely even if MCD's turnaround plan bears fruit, says the agency, as the company is likely to remain focused on capital returns.

Richard Adams said...

Never thought we'd see the day when both McDonald's Corp. and McDonald's Operators have debt problems.

Anonymous said...

Borrow money to buy back their own shares when those shares are at a record high price?

Anonymous said...

Easterbrook ringing the bell at the NYSE this morning. Big smile on his face...why not? US same store sales up
.9% last quarter, but stock now up 17%. What's not to smile about.

Anonymous said...

There's nothing modern and progressive about going back to 2002 pricing.