September 23, 2017

McNews From Small Town Iowa

This article caught my eye because:

* Growing up in Sioux Falls SD I had family in several of the towns mentioned here.

* The selling Operator, Steve Jackson, and I did our time in MCOPCO and Field Service
   at the same time in what was then the San Diego Region.

* The buyer says they were "selected" to buy Jackson's stores. I presume that means 
   "selected" by McDonald's Corp. 

Whatever happened to putting stores on the open market, competition, negotiations ???

Local News: ‘This is going to be our home base’
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More from NRN's Maze on McDonald's Competitors

Investor: McDonald’s success is bad for burger stocks
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September 20, 2017

McDonald's Taps Publicis.Sapient, Capgemini for Global IT

I've not even tried to keep up with the reshuffling of McDonald's USA ad agencies
but this one looks interesting. The new digital agency will hire about 100 current 
McDonald's employees thereby reducing McDonald's overhead. Then, going forward, 
Capgemini might be asked to bill McDonald's Operators for digital services currently 
being funded by McDonald's Corp. 

Thoughts?

McDonald's Taps Publicis.Sapient, Capgemini for Global IT | Agency News - AdAge
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September 19, 2017

McDonald's "Comeback" Hits Smaller Chains Hardest

Jonathan Maze is one of the best financial writers covering the restaurant industry 
which is why so many of his articles show up on this website. But, on this topic I think 
he's missed a fine point.

Over the past two winters (2015/2016 and 2016/2017) sales at the national QSR chains 
have been helped by extremely mild winters in the Northeast and Northern Midwest. 
The smaller  regional chains would not have benefited from the mild weather, especially
the large number of smaller chains that have grown up in the South or the Western U.S.

In'N Out, Jack-In-The-Box, or Sonic wouldn't have benefited from this weather pattern. 
Chick-fil-A maybe a little, but they are still mostly in southern and now western areas.

It kind of proves my theory when Jonathan points out that Burger King and Wendy's did
a pretty good job of keeping up with McDonald's. Of course they did, they also have a 
high penetration of stores in the states where winter weather matters.

Opinion from NRN's Jonathan Maze
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Washington D.C. Has No Room for QSRs

Capitol Riverfront McDonald's, Union Market-area Burger King in the raze pipeline
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Village of Oak Brook Wants Amazon




Oak Brook to bid for Amazon headquarters at McDonald's site

September 13, 2017

Stupid Wall Street Tricks

On Tuesday morning  a research firm raised an alarm about McDonald's third quarter 
earnings being harmed by hurricanes Harvey and Irma. Just because a few hundred stores
are closed McDonald's shares dropped more than $5.00. How silly.

Of course having 300 or 400 stores closed will impact earnings short term but this says
nothing about McDonald's "momentum" or future same store sales trends. This only 
impacts the short term investors who were planning on taking some action based on third 
quarter results to be released on October 24th.

During my years operating Franchise Equity Group I've learned a lot about how Wall Street
functions and count many analysts as friends. But, it's a dysfunctional process and not a 
great place to trust with our money. IMHO

Again, these closures tell us nothing about the long term future of McDonald's USA.

Marketwatch article is HERE

Crain's Chicago Business reports HERE
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September 12, 2017

Management Erasing McDonald's History



Every day there's new evidence that, because management has little history with 
McDonald's, they pretend it was all a mistake and they need to "reinvent" the system.

Libertyville fighting McDonald's efforts to modernize retro building
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September 11, 2017

Dunkin' Simplifying - McDonald's Getting More Complicated

"The challenge for Dunkin' is that it's not the chain known as a coffeehouse (that's Starbucks) and it's not the cheapest choice (that's McDonald's). To combat that problem, Dunkin' Brands is staking out a place as being the chain that offers quick service both through technology and by offering a streamlined menu."

How Dunkin' Donuts Has Changed in the Past Year
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My Seeking Alpha Comment

Kinda happy with this one...

Been buying Mickie D's monthly for over 25 years, via the automatic investment plan. Our first shares were a gift from Fred & Patti Turner, who were really exceptional people and close family friends. Fred Turner really steered McD well, and Easterbrook is doing the same.
11 Sep 2017, 12:17 PM  Report AbuseReply0Like
Whoa - let's not go comparing the current CEO with Fred Turner. Fred built a company on customer care and convenience (QSC). This new guy is an accountant who's running the company for the shareholders. He and the know-nothing guy he has running the USA business are making some huge operational mistakes that will potentially drag down transactions and same store sales.
Give Fred his due - he and Ray built something great - this new guy is just strip mining it.
11 Sep 2017, 07:49 PM  Edit/DeleteReply0Like

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