It is pretty amazing. Yesterday, Ozan reported that MCD has five billion dollars in cash reserves and billions more in credit.. This situation is exactly what cash reserves are for. MCD asking their landlords to forgive their rent is outrageous. Clearly, hypocrisy on full display.
Franchisees will also be paying back McDonald's debt payments, through increased fees or any other charges and new economics packages coming in the future.
McDonald's Corporation should be furloughing all OA's and there are probably 100's more positions too, they should also have a mandatory 20% pay cut decrease for all positions officers and above. They need to feel Franchisees and suppliers pain.
Don't worry! MCD management will use that saved rent money to fund their stock option conversions since buybacks are on hold for now. They continue to cash in without raising the share count and diluting the shareholders.Free money. What are you operators whining about?It would be funny if it weren't likely.
I NEVER thought I would say this, but I actually miss Don Thompson and also Ed Rensi
It would be interesting to know that when MCD does a share buyback, how much of it is purchased from MCD execs and BoD?
Buybacks are in part to fund management cashing in stock options to keep the float from increasinfg and diluting the share price.Buybacks aren't always selfish or bad. For example, if the Corp pays a 3% dividend and interest rates drop to 302%, borrowing to retire those shares saves the Corp money.
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