May 27, 2022
May 26, 2022
Maybe an on-premise single-store operator could make a $400K sandwich shop work. But a multiple with dozens of stores? Not so much.
This is simply an indication they can't find buyers for new or used stores.
May 22, 2022
May 21, 2022
With nearly 14,000 U.S. McDonald's stores, news articles about customer behavior incidents are pretty common. This YouTube video is a little different in that the Sheriff is having a good time with his press conference and attaches "Mc" to almost everything.
Speaking of misbehaving customers...
May 19, 2022
"Wendy's and McDonald's advertisements for its burger and menu items are unfair and financially damaging customers as they are receiving food that is much lower in value than what is being promised." the complaint says.
"Financially damaging customers" - What a joke. These are the same people who comment on financial websites claiming that every time they go to McDonald's the beef patties are smaller.
May 18, 2022
May 16, 2022
May 13, 2022
May 11, 2022
NOA survey and our Kalinowski survey say:
“The PACE audits will hold us back from building sales and will increase our turnover of employees. The worst time in the history of the system to implement such a program,” one respondent said. “Stop PACE programs, which will decimate the staffs we need to operate,” another said. Overall, the proprietary survey ranks franchisee relations with corporate a 1.19 on a scale of 1 to 5, the third-worst score in its history dating back to mid-2003.
May 10, 2022
May 9, 2022
More than a few visitors to this website are fans of Andy Puzder, former CEO of CKE Restaurants. Andy and a few friends have an investment venture based on doing the opposite of what ESG and the like demand. It will be interesting to watch.
"We are not supportive of Environmental, Social and Governance (“ESG”), Diversity, Equity and Inclusion (“DE&I”) or similarly “fashionable” investment criteria that place ideological, social or political goals ahead of our investors’ financial interests." - 2nd Vote Advisers
May 7, 2022
May 4, 2022
While we often complain about someone or some entity being "Woke" there's a greater long-term danger out there for corporate America. That's "ESG" or Environmental, Social, and Governance. This is Wokeness on steroids and is a more formalized way for non-stakeholders to have a great influence on public companies. There will be no end to their efforts to reshape the corporate world to their personal liking.
For instance, the efforts of activist investor Carl Icahn to change the way McDonald's handles pork production has morphed into an effort to eventually remove animal protein from the McDonald's menu entirely.
In other words, McDonald's will be forced to replace animal protein with fake meat just because some people think it's better for the environment. That doesn't mean customers will buy the product.
McDonald's Chairman of the Board mentions ESG several times in his annual letter to shareholders. He also states that "climate change is one of the most pressing issues of our time". That give the environmental whackos a blank change to hassle McDonald's about an endless list of supposed sins.
May 2, 2022
While putting together the aforementioned "market cap" numbers I happened across the recently-released numbers for the CEO of Walmart. In their fiscal year 2022 he was paid $20.83 million. I thought that number sounded familiar. Sure enough, it's just a little more than McDonald's Corp. paid their CEO for the period of time.
Let's see, we've already established that MCD market cap is $188 billion while Walmart's market cap is $431 billion, more than twice the value of MCD.
But Walmart sales for fiscal 2022 were $572 billion, more than five times MCD system-wide sales of $112 billion.
Yet the CEOs make the same $$$?
There's another difference - Walmart's CEO began his career 30 years ago as an hourly paid teenager unloading Walmart trucks.
Activist investor Carl Icahn recently called compensation for McDonald’s execs “unconscionable” and said, "the board was condoning multiple forms of injustice."
One way to gain insight into where your franchised brand is going is to pay attention to what management is telling the investment community. Pay particular attention to the questions from the analysts.