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