July 5, 2026
July 3, 2026
Who Cares About Your P+L?
It's difficult to make investors concerned about restaurant profitability. They may be brilliant when it comes to the corporate balance sheet, but still do not understand how sales increases do not always make it to the restaurant bottom line. Or they may be very judgmental about how much a franchisee is allowed to take home. And they sure don't understand it when the CEO talks about " franchisee cash flow" without factoring in franchisee debt service.
So the following article is a pleasant surprise in that it explains:
"The real question is whether the company's value strategy can generate enough traffic to outrun the margin pressure it creates for its operators".
June 30, 2026
Desperately Seeking Ronald
Much of America has been asking, "Where's Ronald McDonald?"
We've found him at the recent Chicago Pride Parade. The question is, if Ronald is appropriate and fun enough for the Pride Parade, why isn't he appropriate and fun enough for a local McDonald's restaurant event?
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| Skye and Ronald |
June 26, 2026
June 22, 2026
June 17, 2026
Your Equity or Theirs?
June 16, 2026
June 11, 2026
You, You're the Yuan
McDonald's Corp. is harvesting its real estate equity in international markets such as Hong Kong. Let's talk about where these millions show up on their income statement.
The following is provided and written by Grok (the AI service by Elon Musk's X).
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McDonald's Corp. has sold (and continues to sell) several of its retail properties in Hong Kong as part of a broader asset disposal strategy.
- Announcement (July 2025): McDonald's planned to sell eight prime retail properties (fully or partially tenanted by its restaurants) valued at around HK$1.2 billion (US$153 million). JLL was appointed as the sole agent for a public tender (closing September 16, 2025). Locations included Tsim Sha Tsui, Causeway Bay, Mong Kok, Kennedy Town, Tai Kok Tsui, Yuen Long, Tsuen Wan, and Tsz Wan Shan.
- McDonald's continues operating the restaurants as tenants under long-term leases, so operations are unaffected. Reports suggested it might divest more of its ~23 owned properties in phases.
Multiple individual sales have closed, often at strong profits:
- December 2025: A Kowloon property sold for HK$72.4 million (US$9.3 million) — part of the eight-property batch, with total proceeds from four sales reaching ~HK$333 million at that point.
- Yuen Long (three-storey property at Yuen Long Trade Centre): Sold for HK$77.4 million (US$9.9 million) to Acc Investment (originally bought in 1987 for ~US$1.2 million).
- Quarry Bay (Parkvale Place): Sold for HK$110 million to Uni Investment Development.
- Mei Foo Sun Chuen (Mount Sterling Mall): Sold for HK$93.5 million (US$11.9 million).
- Other sales have pushed cumulative proceeds higher (e.g., reports of seven shops disposed of by mid-2026).
June 7, 2026
Will McDonald's be a Family Restaurant Again?
If many Owner/Operators invested in the wrong decor, should PJB pay for changes with corporate capex?
Restaurant chains are turning their attention to families - RestBusi
June 3, 2026
Is PJB Responsible for "Gray and Generic"?
"Over the past decade or so, McDonald’s has renovated its restaurants to make them sleeker and more modern. In the process, it has largely removed playful colors and mascots, sparking criticism that locations felt gray and generic. The company is now looking at “injecting some of the playfulness” back while making layouts airier and more open, according to Jill McDonald, who took over as the company’s chief restaurant experience officer last year."
Wasn't the new decor one of PJB's first initiatives after joining McDonald's?
June 1, 2026
Vote Until You Get it Right
McDonald's Corporation held its 2026 annual meeting on May 20th. Results of the voting for officers and directors have been published.
McDonald's has 710 million shares outstanding
The typical board member received just under 500 million votes "For" serving until the 2027 board meeting.
There are always votes "against" certain director candidates. Aside from the CEO/Chairman, the average director received 11 million "Against" votes.
The CEO/Chairman received nearly 39 million votes "Against".
Some have speculated that this highly negative vote was a complaint related to the same person serving as CEO and Chairman. Or, it could just be a reaction to the recent performance of McDonald's shares.
Or it could be a reaction to the CEO's oddball behavior on social media and a fear that the CEO is not a serious or stable person.
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May 30, 2026
Anonymous Comment of the Month - May 2026
Unknown commented on "Starbucks CEO Has Blunt Message on Discounts"
May 6, 2026
"Got a call from my Field Office Vice-President - "It looks like your not following the recomnedation of Deliotte pricing on under $3, just wanted to bring it to your attention, your affected pricing is above what it was previously" No S..t, I am already discounting a McChicken a dollar lower than before and explain their whole math to them. I also mentioned just spending close to $50K average per restaurant on Technology and just recevied my new NRBES which is probably over $100k per restaurant and McD's want six month plan to complete. Ok so let's sell basically items under $3, lower a dozen or so other items which items sold now at discount will be over 50% of the products sold, not sure where they think the money will be coming from."
May 27, 2026
Starbucks: To AI or not to AI
At Starbucks, pen and paper beats AI
"As the chain suggested, restaurants should consider where AI really adds value—and where it just adds more work."
May 21, 2026
May 20, 2026
Chicago: McDonald's Park to Open in 2028
Given the growing popularity of soccer, this appears to be a good move and should benefit the brand worldwide. Just don't stick the Chicago Owner/Operator with the entire bill.
Chicago soccer club to name McDonald's stadium
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May 15, 2026
The $20 Million Man and MCD Share Price
Anyone who follows or invests in publicly traded stocks has seen situations where the price of the stock takes a hit due to unexpected results or some news that frightens investors. Very often, the price of the stock will rebound, sometimes the next day, and sometimes back to a newer high. This is a sign that investors have confidence that management has the skills and experience to move the company forward. Without this confidence, the stock price will stagnate or drift lower.
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| Source: stockcharts.com |
May 13, 2026
MCD Won't Make 50K Stores on Time - That's a Good Thing
From QSR Magazine:
"However, Borden and Kempczinski emphasized that development decisions will be based on returns rather than hitting a fixed unit target.
“We’re not chasing an absolute growth number,” Kempczinski said, noting that locations that no longer meet return thresholds due to rising construction or supply chain costs will be removed from the pipeline."
Not chasing a number? They've been chasing a number since the announcement of "Accelerating the Arches". It's obvious this inexperienced management team, with little experience building stores, is running into snags they didn't expect.
While it's not a scientific measurement, there have been numerous press articles about cities, towns, and communities giving the corporation a hard time about permitting a location. For an experienced McDonald's person, this is nothing new. It's been happening since the 1970s. There's always a group in the area who think they know better, or one or two grey-haired hippies on the local council or planning board. But PJB wouldn't know that.
Using construction costs as an excuse is silly since they can just pass those costs on to the franchisee. Unless they are building a McOpCo, and it doesn't seem they'll be doing much of that.
So, PJB is laying the groundwork for a future admission that he can't make the previously announced goals.
May 8, 2026
Analysts Worried MCD Owners Will Raise Prices
If one reads the analyst's comments in both the transcript and the press, it's obvious that management will be selling a bunch of McOpCos this summer. A CEO with no restaurant experience can't make money in the restaurant business? Who'da thunk it?
May 7, 2026
May 5, 2026
Is OPNAD Ready For A 60th Birthday?
There have been many comments mentioning OPNAD. While I doubt McDonald's Owners read them, profiles and press releases about McDonald's corporate personnel often mention that the featured person has been involved in "modernizing" McDonald's.
What about modernizing OPNAD?
OPNAD was launched in the late 1960s as an Owner/Operator initiative.
Keep in mind, in the late 1960s:
The Vietnam War was at its peak.
Lyndon Johnson was POTUS.
Seat belts were only an option in new cars.
No one on McDonald's senior management team had been born yet.
Yet, OPNAD keeps marching along as though it is part of the McDonald's franchise. It's really not. It's just that management has worked hard at making it seem so.
If McDonald's Owner/Operators are unhappy with, or don't trust, OPNAD, shouldn't this financial powerhouse be modernized?
April 30, 2026
April 28, 2026
JIB Franchisee Suing JIB Corporate
".....accusing the fast-food chain of a litany of problems, including cannibalizing its stores with new locations, marketing problems and royalties on delivery orders."
“Plaintiffs have suffered millions of dollars in damages and seek all remedies permitted by law.”
April 27, 2026
PJB's Latest Clown Act
Soft serve on a Filet-O-Fish - Something a 13-year-old would do
If this guy had any adult supervision he wouldn't be allowed on the internet
I Asked Grok - "should the same person be corporate ceo and also chair of the board?"
Grok says:
No, the same person should not automatically serve as both corporate CEO and chair of the board. While it's common in the U.S. (especially among larger companies), the balance of governance principles, potential risks, and empirical evidence leans toward separating the roles in most cases—particularly for mature public companies. The decision ultimately depends on the company's size, stage, culture, and specific circumstances, but separation is increasingly viewed as a stronger governance practice.
Key Arguments For and Against Combining the Roles (CEO Duality)
Arguments in favor of combining CEO and Chair roles (stewardship or "unity of command" perspective):
- Faster, more decisive leadership: One person has clear authority, reducing internal conflict, duplication of effort, or confusion over strategy. This can be especially useful in fast-moving industries, crises, or smaller/younger companies (e.g., startups or founder-led firms) where unified direction helps execution.
- Deeper knowledge and efficiency: The CEO has intimate operational insight, which helps when setting board agendas, facilitating communication between management and directors, and making informed decisions without information gaps.
- Avoids potential power struggles: A separate chair could create rivalry or slow things down. Some studies show that forced separations (due to investor pressure) can lead to negative stock reactions and weaker subsequent performance in certain contexts.
- Works well with strong boards: If independent directors and committees are robust, duality may not harm oversight much.
Arguments against combining the roles (agency theory perspective, emphasizing checks and balances):
- Conflict of interest and weakened oversight: The board's primary job is to monitor and hold management (including the CEO) accountable—hiring, firing, evaluating performance, and setting compensation. When the CEO chairs the board, they influence meeting agendas, discussions, and even their own oversight, potentially leading to entrenchment, higher pay without strong performance links, or suppressed dissent.
- Better independence and governance: A separate, independent chair can run board meetings more objectively, encourage candid input from directors, and serve as a neutral bridge to shareholders. This is seen as reducing risks seen in scandals (e.g., Boeing, WeWork).
- Focus and bandwidth: Being CEO is already a demanding full-time operational role. Adding chair duties (facilitating board dynamics, shareholder relations) can dilute effectiveness.
- Global norms and trends: In the UK, Europe (e.g., Germany often prohibits it), Canada, and Australia, separation is the standard or strongly preferred. The U.S. has been shifting slowly—S&P 500 companies with combined roles dropped from around 50-65% in earlier years to about 40-45% in recent data, with more independent chairs emerging.
Empirical research on performance is mixed and inconclusive overall. Many meta-analyses and studies find no strong, consistent link between duality and better (or worse) firm performance, risk-taking, or compensation. Outcomes often depend on context: duality may suit high-complexity, innovative, or dynamic environments, while separation benefits firms needing stronger monitoring. Forced splits sometimes correlate with poorer results, suggesting boards should choose based on firm-specific needs rather than blanket rules.
Practical Considerations and Best Practices
- Company stage matters: Duality is more defensible in early-stage, founder-led, or high-growth private/venture companies where agility trumps formal checks. For large public firms, separation (or at least a strong lead independent director as a compromise) is preferable.
- Safeguards if combined: Strong independent directors, robust committees (e.g., audit, compensation chaired by independents), regular CEO evaluations, and clear role definitions can mitigate risks.
- If separated: The chair should ideally be independent (not a recent former executive), with a defined, non-overlapping mandate focused on board leadership rather than operations.
- Trends and pressure: Institutional investors, proxy advisors, and activists increasingly push for separation as a governance "best practice." Many companies now disclose their rationale in proxies (required by SEC rules since 2010). Splits often occur during transitions, crises, or succession planning.
In short, while a talented, trustworthy leader can handle both roles effectively in the right setting, separating them generally promotes healthier accountability, reduces conflicts, and aligns better with modern expectations of good corporate governance. Boards should evaluate this thoughtfully rather than defaulting to tradition—ask: What structure best serves shareholders and long-term value here? Many successful companies thrive either way, but the default presumption should favor independence unless there's a compelling reason otherwise.
Written entirely by Grok, I just cut and paste
https://grok.com/
April 22, 2026
McDonald's Store Counts - End of 2025
April 17, 2026
April 13, 2026
April 11, 2026
Should PJB Be His Own Boss?
Recent events have shown that he needs adult supervision.
NLPC's explanation of their action is in a press release HERE
Please note that the above press release includes a link to their version of PJB's history. The link is just above his picture.
April 9, 2026
PJB Makes Matters Worse
After embarrassing himself and brand McDonald's with silly social media postings, a competent CEO would lie low for a while and work on long-term image repair. But not PJB. He's obsessed with being a celebrity and calls in the Wall Street Journal to expand his profile.