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April 8, 2020

McDonald’s Reveals Sales Data Prematurely

About five years ago McDonald's changed from announcing monthly sales results
to quarterly results. The fact they have revealed sales results for 1Q2020 ahead of 
their formal announcement on April 30th means they are trying to get out ahead 
of something. Possibly an earnings disappointment.

At McDonald’s, the coronavirus interrupted a strong start
.

15 comments:

Anonymous said...

McDonald's over the last few years has sold many or should say most of their assets around the world. They have done this with other calculated financial moves, share buybacks etc. to continue to generate revenue percentage returns for shareholders.

In the last few years they have begun to sell some of their most highly valued real estate in the USA. I see their next possible orchestrated move over the next few years starting to possibly implement sale-leasebacks on their real estate this is the perfect crises to do it in they will never have that opportunity again to stick it long-term to the franchisees I can be certain those discussions are going on with the BOD's right now. It will be years before they can ever generate previous levels of shareholder revenue again with their current structure so what options do they have to keep the inflated share price up in the coming years?

Anonymous said...

Chris - Try taking no salary and using your own cash to keep your business operating then you feel many of your franchisees pain. I would love to have half my last year's salary and keep my personal cash.

Richard Adams said...

People like that never risk their own money, it's always other people's money. It's one of the personality traits of control freaks.
.

Anonymous said...

And they dont defer anything for operators, as they are still taking percentage rent .. and in there is your base rent amount. Tada!

Definately not Ray Krocs McDonalds.

Anonymous said...

Tomorrow 4/10 ALL my Rent & Service Fees will be Drafted, Because my Base Sales are low and I was a half a point under the 25% threshold and getting worst daily. Nothing was deferred for me, with the exception of not taking the Base on the 1st.

Actually, this is what use to happen in the 50’s, 60’s & 70’s when we sent in a Rent Coupon with our check.

Having worked through many Events and watching Mr. Kroc, Mr. Turner, Mr Neumann and several other leaders, I long for the McD. Values of my youth. These leaders of today do not have the values and heart of the McDonald’s I grew up with.

Anonymous said...

Walmart is abating rents on Mcds in WM. But of course,Mcd is still collecting rent from us.

Anonymous said...

Dunkin just announced donating 1 million pound of Coffee to health care facilities. Where is McCafe??

Anonymous said...

Hard to do any when McCafe only gets $1 per cup.
No one wants it even for free.
Charge full price. If you can't start now when so many competitors are closed, when? NOA!?!?

Anonymous said...

Don’t blame the NOA. BLame OPNAD and its sheep.

Anonymous said...

If you dont like $1 asd maybe you should ask how your opnad rep voted and hold them responsible. It passed overwhelmingly

Anonymous said...

Lets face it-McDonalds is nothing more than a real estate holding company, not a restaurant company! We the operators are the restaurant company !

Anonymous said...

I agree with the real estate holding company comment.

Do Not be confused that is what McDonald's has always been since the 60's, when the Real Estate play began. Restaurant Locations, Future Locations, Office buildings and individual condos. The condos that I am aware of, most where sold off in the 98 or 99, (2) in Bay Hill in Orlando, 1 outside of Atlanta, 1 in Key West 1 in Vermont and 1 in Palm Springs. Jerry Newman Purchased these to shelter income when times where Great and sold them and along with McOpCos whenever income was down to meet earnings. Then when things turnaround again added back to the McOpCos and other investments.

The Real Estate side has always been the Floor or the Equilibrium side of the Company. The Rent and Service Fee side has always been the Cash generator side and the McOpCo side was another revenue stream. They have tried to add to those profit centers by adding License ventures like children Play sets, Leaps & Bounds, several other restaurant plays and now McCafe in the grocery stores.

We the operators have always been a cog in the big wheel of McDonald's.

With some of the decisions that have been made during the last 3 to 4 years there is not as much available cash due to the Pandemic. Only a few McOpCos left, Leasing and building in Downtown Chicago, as oppose to owning in the suburbs, Sales are down in all revenue streams and Rent & Service income Severely hit due to whole countries being shut down.

Do Not get me wrong I am not crying a river for McDonald's, they are not going broke, they just have a short term Liquidity problem, sound familiar? I am just stating some facts that many may not know. That is partially why McD. I am sure why, is unwilling to give us a month free of Rent and Service fees, because if they give that to the USA they have to do the same World Wide, for 1 month would be about $400 million. I might be off a dollar or 2.

Anonymous said...

Do not forget the new tech fees added to the many revenue streams that have nothing to do with burgers and fries where we all make a living.

Richard Adams said...

And will McDonald's use these new profit centers to sell services to McDonald's competitors?
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Anonymous said...

Now MCD Corporation has a new scheme, profiteering off protective mask sales to restaurants. Get this, made in CHINA.