This is why the McD stock is cratering- MCD is executing share repurchases under a $15 billion buyback program that was approved by its Board November 2024. McDonald's repurchased $396 million worth of common stock over a recent 3-month tracking period. Over the trailing twelve months, total buybacks reached approximately $1.98 billion.
They are trying to keep the stock price inflated, but Wall Street is not fooled.
McDonald's can always find ways to manipulate their stock through financial strategies.
McDonald's has already sold several high-value company-owned properties. If you think you're safe because your franchise sits on McDonald's-owned land, I wouldn't count on that remaining the case forever. I can easily envision a future strategic plan, perhaps packaged as a "10-year vision," calling for the sale of a significant portion of the company's real estate portfolio through sale-leaseback transactions.
My concern is that the company is changing in fundamental ways, regardless of who occupies the executive offices. Once a corporation reaches a certain stage, strategies can take on a life of their own, and each successive leadership team may simply continue, or even accelerate, that direction.
The real issue is that franchisees have had very little influence over these long-term strategic decisions. It feels like the train has already left the station, and franchisees don't have a seat on that train.
Agreed. Owning real estate was always a core strategic underpinning of McDonalds. Selling it off to pay for management bonuses and dividends is a shortsighted and misguided tactic. Selling the company for parts.
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This is why the McD stock is cratering-
MCD is executing share repurchases under a $15 billion buyback program that was approved by its Board November 2024.
McDonald's repurchased $396 million worth of common stock over a recent 3-month tracking period. Over the trailing twelve months, total buybacks reached approximately $1.98 billion.
They are trying to keep the stock price inflated, but Wall Street is not fooled.
Like a 70 year old man trying to compete on the college track team managment is pretending that McDonald's is a still a dynamic growth company.
.
McDonald's can always find ways to manipulate their stock through financial strategies.
McDonald's has already sold several high-value company-owned properties. If you think you're safe because your franchise sits on McDonald's-owned land, I wouldn't count on that remaining the case forever. I can easily envision a future strategic plan, perhaps packaged as a "10-year vision," calling for the sale of a significant portion of the company's real estate portfolio through sale-leaseback transactions.
My concern is that the company is changing in fundamental ways, regardless of who occupies the executive offices. Once a corporation reaches a certain stage, strategies can take on a life of their own, and each successive leadership team may simply continue, or even accelerate, that direction.
The real issue is that franchisees have had very little influence over these long-term strategic decisions. It feels like the train has already left the station, and franchisees don't have a seat on that train.
Agreed. Owning real estate was always a core strategic underpinning of McDonalds. Selling it off to pay for management bonuses and dividends is a shortsighted and misguided tactic. Selling the company for parts.
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