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January 28, 2020

McDonald’s 4Q’19 Conference Call - Transcript

McDonald’s 4Q’19 Earnings Conference Call - Transcript - SeekingAlpha
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9 comments:

Anonymous said...

I look forward to listening to CFO, Kevin Ozan, pretend he is an operations person on tomorrows earnings call. (8:30 EST)

All while trying to protect Hatchet Man Chris’s reputation to analysts.

Why does the CFO always explain to Wall Street how we run our restaurants? It sure looks like he is the one running the show with no regards to Operator’s bank accounts or equity.

Maybe, Debt Devil Kevin can explain declining individual store results on the call too?

Anonymous said...

Will Debt Devil Kevin (DDK) also mention the hundreds of millions Corp will shove down Operators throats requirements coming after the WWC?



Protect your EQUITY- JOIN the NOA !

Anonymous said...

Man, that BBV2020 has really paid off.

Here I was thinking price increases due to mandatory minimum wage hikes pushed sales, but ot seems the price increases paid little to the success with the increased sales.

Its all the technology and delivery, even though TRANSACTIONS are down. We should be so thankful to have business savy leaders to correct and lead such misgiven thoughts. And once again, they get their headline! Even CNN touts SALES SUCCESS, on declining transactions. Never once questioning the conflict. Bam, Baby! What a marvel!

I was fretting 2021, as most min wages would be already instituted and the system will be going against those wage increase numbers. But now Im satisfied, EOTF/BBV will have offset those fears and inhibitions. Besides, 2021... theres many opportunites to excercise stock option prior to then!

Anonymous said...

It was great to hear our Placeholder CEO tell analysts today that we are Wealthy owner operators with record organizational cash flow. He forgot to mention the increase in stores per organization, prices increases relative to an increase in minimum wage and the record debt level per organization!

He needs to go so we can MMGA! That way I can try and MMBAGA...Make My Bank Account Great Again!

Anonymous said...

GREAT comments

I left a message before - CRIS K needs
to retire before WORLD WIDE so we have
something to celebrate

2nd - minimum wage - happening to
me for the next several years - difficult
to raise prices - lets say most CBB
drinks because on the $2.00 advertised
price

I have not seen anything from NOA
but is there a meeting planned on
Sunday in Orlando? If YES can someone
provide details. THOUGHT I read that
but have not seen anything

THANK YOU

C U in the BIG O


Anonymous said...

I heard that the McCafe products in grocery, cNvenience stores and every retail outlet possible that corporate uses to compete against us is FAILING.

MCD gets to pull out of the money loser McCafe yet we are forced to continue discounting coffee for $1 and espresso for $2 maximum while our competitors drink up the profits produced by full priced beverages?!?!?!

Where's MY escape hatch from McCafe losses? The suits certainly have one and keep cashing those stock options while I am forced to pimp out discount drinks and lose the margin that my competitors enjoy.

Anonymous said...

to above-

Yes there is a NOA meeting on Sunday April 19,2020. It is open to all NOA members.Location is WDW Swan & Dolphin, time is 3-6:30 meeting, 6:30-8 reception


Be there

Anonymous said...

The earnings report was a little bizarre for me. Bragging about 100 Billion in sales...... Really? That's not solely McDonald's revenue. that includes all owner operator numbers too. McDonald's PR Team needs to screen this stuff. McDonald's makes money on rent and service fees. they should report on the revenue they receive on that number only. IMHO

Richard Adams said...

You're right, MCD makes money on rent and service fees. But their profits for any quarter or year depend on total sales. Analysts covering MCD spend the last month of any quarter trying to get a bead on same-store sales (+/-) so they can project earnings per share for the quarter. Total sales are the starting point for that calculation.

Total sales are even more important because of the reduction in the number of McOpCos. Analysts had zero insight into what McOpCo profit results might be but now it's all about total sales and income from rent and service fees.

Sales and revenue are two different things. If you own a single McDonald's franchise your revenue is your top-line sales from which you will deduct your operating expenses. A complex multi-national like MCD will have many streams of revenue, rent and service fees being the largest.
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