Analyst David Palmer is out with expanded comments on the McDonald's value platform.
Here's an excerpt from his report.
"So what now for McDonald’s? In our view, McDonald’s will likely stay committed to the
$1, $2, $3 menu with some other marketing adjustments that will be supported by its
made-to-order fresh beef burger launch. While value remains a key pillar in the US
turnaround—there are others including ongoing food upgrades, a massive reimaging
campaign, and improving convenience (mobile order and delivery). McDonald’s is asking
for significant investments and has a new grading system that is designed to bolster in-restaurant execution, which may result in fewer, better franchisees in the system."
Trouble is, the people deciding on who's a "better franchisee" know very little about what
it takes to be successful in McDonald's.
McDonald's (MCD) Expected to Make Quick Changes to Value Menu - RBC