December 13, 2017
Now McDelivery Makes Sense...
It's been hard to get our brains around the McDelivery program but it makes more sense
if we consider this initiative works in a McDonald's USA with fewer and fewer McOpCos.
For decades McOpCo profits were an important factor in McDonald's corporate earnings.
This brought a little balance to promotions and initiatives. McDonald's Corp. had skin in
the game. If an idea was bad for profits it wouldn't make it through the filters because it
would hurt McOpCo as much as the Operators.
Without a large McOpCo base McDonald's Corp. must depend on rents and royalties for
nearly all of their income. And the only way earnings will grow is through ever increasing
same store sales.
It's likely that in the future McDonald's Operators will be confronted with many promotions and initiatives that only build sales and would have never seen daylight ten years ago.