February 27, 2017

RBC Capital on McDonald's Analyst Day

David lays out expectations for Wednesday's meeting. Note in the second paragraph 
his #4 objective is, "higher franchisee accountability to in-restaurant execution".

This is Wall Street code for "get those franchisees off the golf course and back to work".

RBC Capital Markets - The analyst day playbook


Anonymous said...

If more franchisee accountability is what they think will help they will certainly get it. However, they need to be realistic about MCD treatment of franchisee's and how our stores are supporting an unresponsive and overbearing bureaucracy whose main management tool is intimidation and dishonesty. MCD issues is that MCD does not make good business decisions. Profit, cash flow and shareholder value is not and has not been a priorty for years. Sound business decisions were replaced by political correctness and a bureaucracy who have been running the company for their own benefit. Again, they do not make good business decisions!!!

Believe me, If Easterbrook can take a half a billion dollars in cost off the USA P&L by the end of 2018 that proves how poorly this company has been managed. This has nothing or very little to do with the franchisee's. Think about it, A half a billion dollars!!!!

A fact like that and they have the gall to point fingers at the franchisee's is unbelievable.

Anonymous said...

Unfortunately they won't be just pointing fingers, they will be terminating, evicting and confiscating your equity in your restaurants by flipping them and keeping the currently sky high valuation for franchised restaurants. See the post below about that and how the Dunkin' Donuts system extorted tens of millions a year from their operators until they got wise and some guts.

Oak Brook knows that the window of high valuation is not long, so expect the ball to be rolling.

Anonymous said...

Sadly, the McDonald's business I once knew and Loved has gone away. The Analyst Call will be laced with all the things we see and hear in Chicago over the last 3 days and the 2 meetings that were prior. Due to the respect of the Non Disclosure Doc. I signed, I will not speak of details.

However, I am afraid that the O/O's that have attended these meetings will be portrayed as being completely on board during this call. This will be a total misrepresentation of the truth. There is way too much data and information to digest without getting other Professionals involved like our CPAs.

I for one will be evaluating if it is time to leave our system or is this a New Dawn. I am leaning toward it is time to leave.

However, Be Assured "This Train Has Left the Station".

Anonymous said...

I left on the train three years ago, and have never looked back. Best decision ever!