Anonymous made a comment about analyst's questions on the recent McDonald's conference call with analysts.
"Most of them seem more interested in cheerleading than challenging the narrative."
They were softball questions, weren't they?
The truth is that analysts aren't here to tell management how to run the company. I'm sure only a few of them have any restaurant experience or skills. They are financial people who create expectations and try to explain why these expectations are or aren't met. However, that expectation is limited to the numerical results that have been released. An analyst rarely digs into internal matters such as morale or corporate organization. Or management's operational competence.
One exception to this was the last three years of McDonald's CEO Jack Greenberg's regime. Tired of being lied to, the analysts became outspoken about the need for some turnover.
But on this particular call, the results released by McHQ were an improvement over recent quarters, and the CEO went from zero to hero.
Owner/Operators should listen to these quarterly calls based on the theory that O/Os can tell a lot about the future of their business by listening to the discussion of corporate plans.
And, trends in analysts' comments and questions reveal a great deal about the future. With this Chicago regime, they are the tail being wagged by Wall Street's dog.
But don't expect a cage match with the CEO. The analysts will always be courteous and professional, no matter what they write in their reports.
The tough questions must come from the Owner/Operators.
3 comments:
100% true. Listen when the CEO and CFO and whatever other suits say on these calls. You need to know how the executives make their money, most importantly because most of that money comes from franchise owner operators. It is a clue as to how much deeper that hand is going to go into your pocket.
Isnt the new EVM discounting Corporate PRICE FIXING?????
Omce opon a time McDonald's Corp worried about that kind of thing.
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