McDonald’s Settles Lawsuit Filed by Black Franchise Operators - Bloomberg
Thats only one operator. There are 50 more suing MCD for billions. Why do you think the recent diversity push was announced? To take the heat off Chris K's obnoxious comments to a Black mother, and to divert attention away from the multiple existing discrimination lawsuits. Im selling all my stock.
$250mm to finance preferential loans to minorities? Can you say REVERSE DISCRIMINATION? Here comes another lawsuit......
Chick fil a has 2,672 stores and they have less than 50 Black owners.Why dont we hear that in the media?
Considering current sales multiples of 7x -9x cash flow, it sounds like $6.5mil was a cheap price for 4 stores.
As for Chik-Fil-A, because their Black owners are treated well and are making money in well located units.If MCD Black owners were treated as well, there wouldn't be lawsuits in McDonaldland. Unfortunately, the Hamburger isn't perceived as fair by these Owners.
7x-9x CF numbers are insane. That means every bit of CF is going to Debt (assuming you take a loan like most people) and you subsidize the debt with other store's CF. All may seem well now at current CF, but I'd be shocked if we don't see CF erosion over the next few years. And those who are buying at 9x probably will be selling for 5-6x multiple in a few years to restructure their debt load.
First of all Chik-Fil-A is privately owned. Most of their operators have just one store, two at the most. They split the profits with the company(avg.income for an operator is $200k-$400k/year with a 5-year license), but the operators have no equity in the business...they are not "owners" and cannot sell their license/franchise/store. As a reminder, McD's has been one of the first woke companies in the US when, back in the 1980's or so, they formed the BMOA, HMOA and WON giving special attention/priviliges/rights to operators based on race and gender: one example in the DFW Region, black operators had a special breakfast promotion with rent rebates, etc. given back to black operators, but not white operators.It caused a stir, so they eventually dropped the promotion. So the current financing deals with minorities is nothing new within the system.
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