QSR corporate heads are in a terrible bind. They get paid the big bucks to produce growth for shareholders. Yet, by their own admission, QSR markets are oversaturated, and QSR isn't a growth industry.
That begs the question: How hard will McDonald's management push Owner/Operators to produce growth for the "system"? How much discounting? How much debt? How much cannibalization by new locations?
“Traffic has been flat for several years now,” Ian Borden, McDonald’s CFO, said in an interview following the company’s recent Investor Day presentation. “I think that’s partly because more capacity is being added in terms of new units than incremental customer demand, and I don’t think that’s going to change in the near-term.”
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