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October 29, 2019

Nightmare on Carpenter Street

Yes, last week was a rough one for McDonald's investors. I don't know what's going to happen with McDonald's share price but I can predict what the corporate suits are doing this week. They're in a panic to accelerate several initiatives.

Many Wall Street types and most in the business media are blaming the soft traffic numbers for McDonald's USA on two things.

1) The chicken sandwich wars (about to be amplified by Popeye's).

2) Lack of McDonald's fake meat products. Just because many other chains are adding fake meat sandwiches and the like it appears to be a national trend. It's not, but that's what's being reported.

So, McDonald's management will be expected to jump on these two bandwagons with both feet. Their deadline is the third week in January which will be the next quarterly earnings release and conference call with analysts. Management will be expected to report substantial progress on chicken sandwiches and fake meat.

And that's why we'll see management panicking. They have about eleven weeks to work their magic.

Unless of course,  McDonald's USA turns in some spectacular sales in November and December. If so management will be temporarily off the hook but will still be pressured on the above initiatives.

Meatless meat backlash - Vox

McDonald's expected to jump into chicken sandwich war next year - Marketwatch

Canadian fake meat hasn't been a blowout - Marketwatch

October 15, 2019

Control Freaks in Action - Part Dos

Subject: Leaks in the McDonald's system

While it's very convenient for McDonald's HQ to blame any leaked information or plans
on the Owner/Operator community 99% of the leaks in the McDonald's system come 
from employees of the outside advertising agencies and PR firms.

These people are loyal to no one and are always networking for their next job. 
It's 
important they establish connections with reporters and trade pubs who cover the 
advertising business.

But that makes NDAs a great way to shut down communications among Owner/Operators
while the agency people continue to sing like birds.
.