January 30, 2018

WSJ on McDonald's Q4

"But some franchisees worry the strategy isn't sustainable. In a recent anonymous survey conducted by Instinet, many McDonald's franchisees in the U.S. said they fear low-price
items will eat into their profits, especially as commodity prices rise. One franchisee said 
the new menu is "good for buying guest counts" but isn't likely to be profitable. Another predicted that the new dollar menu won't last the year."

Value Meals Drive McDonald's Sales


Anonymous said...


Anonymous said...

Laughed at "hoping consumers drawn in for cheap sodas and burgers will also order more expensive items". Been hoping that for 20 years and countless ceo's and marketing departments must be something in the water they drink to brain wash our OPNAD reps to vote for this stuff, no one to blame but ourselves, we elect these people to represent us.

Anonymous said...

Owner/Operators around the country are not happy with the huge reinvestments they are forced to do. Large numbers of operators will be put in financial trouble with the amounts of money they will be spending. Operators are not happy with the company direction but they will not say anything fearful of retaliation. The company wants little or no input from Operators. The company looks at Operators as the problem instead of the solution. There is not a good trust level with the company as they drive owner equity down and make restaurants not marketable to sell due to extreme screening of
potential buyers

Anonymous said...

Restaurants are not marketable becuase of our closed system; much easier if you are a Yum Brand, JIB or any other restaurant franchisee to sell to an exsisting restaurateur from another brand other than your own. Those brands look at the buyers financial and operational resources to approve them which can be fairly easy. We are only owners of equipment and operators of the restaurant like a McOpCo Director. Our equity continues to erode thanks to the work of our NLC and SET teams.

Anonymous said...

Our region is losing a little less than 10% of our operators. Some retiring (that
always happens) but a larger number are having a hard time with bank loans and are
selling. Unfortunately, they are selling at low earnings because of this EOTF.
I feel bad for them because it could be me in a few years. These operators put
their life in this business and are now selling at a discounted price

The future to me does not look bright.

10% less operators this year

Modern and Progressive