Cattle Outlook: Fewer cattle in feedlots, record high for beef Cattle News:
Cattle Outlook: Fewer cattle in feedlots, record high for beefhttp://
December 22, 2012
Fewer Cattle in Feedlots, Record High for Beef
Cattle Outlook: Fewer cattle in feedlots, record high for beef Cattle News:
December 19, 2012
Famous Dave's hires RMS
Famous Dave's hires pricing consultant Revenue Management Solutions:
Former McDonald's Exec to Run Japanese Chain
It's good to hear that Ralph Alvarez's health problems have been resolved.
Former McDonald's Chief to Run Japanese Chain Skylark:
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Former McDonald's Chief to Run Japanese Chain Skylark:
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December 18, 2012
December 17, 2012
Consumer confidence to remain fragile in 2013
"Despite ongoing improvement, the U.S. economy has only
recovered about half of the jobs lost during the Great Recession,
and consumer confidence is expected to remain fragile in 2013."
NRA Rstaurant Industry Forecast::
.
recovered about half of the jobs lost during the Great Recession,
and consumer confidence is expected to remain fragile in 2013."
NRA Rstaurant Industry Forecast::
.
December 13, 2012
December 11, 2012
McDonald’s CFO Must Defend Margins From Bargains
The Wall Street Journal profiles McDonald's Chief Financial Officer. An analyst is
quoted, "Bensen “has to be the voice of reason,” said Andy Barish, managing director
of equity research for Jefferies & Co. “There needs to be a little bit of balance
and discipline” when it comes to pricing."
This makes it sound like the CFO sets menu prices. While he's not supposed to be doing
that he probably does have RMS on speed dial.
The CFO Report - WSJ:
.
December 10, 2012
December 8, 2012
Obamacare and Food Inflation
A McDonald's Operator asks - "How are Operators planning to pass
along costs to customers when the Affordable Healthcare Act kicks in?"
In my humble opinion - in the short term - they can't.
Quick Service Restaurant menu prices are already at the upper limits and
speaking as your customer, we're just not going to take it anymore.
Future increases are going to seriously damage guest counts. It's fine to
ponder factors like Food Away From Home but because of the AHA and
possible food shortages Operators are headed into the great unknown.
Shareholders have enjoyed the fruits of food inflation in recent years and
it appears that managements of QSR companies do not want franchisees
or investors to see any challenges ahead.
In particular, at McDonald's, the corporate folks are counting on a food
inflation windfall to continue to indulge shareholders and to pay for MRPs.
So McDonald's customers will be asked to pay $5.00 or $6.00 for a Big Mac
to cover increased food costs, healthcare costs, and to help the Operator
pay for remodeling their landlord's building? That's just not going to work.
I'm suggesting McDonald's Operators do several things:
* Don't count on food inflation when making plans for the future. Your
customers will outsmart you and they'll certainly outsmart Oak Brook.
* Back off on borrowing money. Even though interest rates are favorable
you're in rough seas, there's a killer wave of unknown magnitude on the
horizon, and Operators are willingly taking on water?
* Do not let management use Operator "leadership" as a tool to rush you
into taking on debt.
* Take another look at our comments on the Dollar Menu.
In a recent letter to fellow Operators a member of an RLC wrote,
"Our finances are under pressure and will most likely continue to stay
that way." The letter went on to encourage Operators to hurry and sign
up for more MRPs!
An obvious Oak Brook form letter but is this the kind of schizophrenic
financial advice one gets for their McDonald's franchise fees?
The challenges of 2013 and 2014 could not have been imagined five years
ago and sticking to a corporate agenda developed a decade ago may do a
lot harm.
.
along costs to customers when the Affordable Healthcare Act kicks in?"
In my humble opinion - in the short term - they can't.
Quick Service Restaurant menu prices are already at the upper limits and
speaking as your customer, we're just not going to take it anymore.
Future increases are going to seriously damage guest counts. It's fine to
ponder factors like Food Away From Home but because of the AHA and
possible food shortages Operators are headed into the great unknown.
Shareholders have enjoyed the fruits of food inflation in recent years and
it appears that managements of QSR companies do not want franchisees
or investors to see any challenges ahead.
In particular, at McDonald's, the corporate folks are counting on a food
inflation windfall to continue to indulge shareholders and to pay for MRPs.
So McDonald's customers will be asked to pay $5.00 or $6.00 for a Big Mac
to cover increased food costs, healthcare costs, and to help the Operator
pay for remodeling their landlord's building? That's just not going to work.
I'm suggesting McDonald's Operators do several things:
* Don't count on food inflation when making plans for the future. Your
customers will outsmart you and they'll certainly outsmart Oak Brook.
* Back off on borrowing money. Even though interest rates are favorable
you're in rough seas, there's a killer wave of unknown magnitude on the
horizon, and Operators are willingly taking on water?
* Do not let management use Operator "leadership" as a tool to rush you
into taking on debt.
* Take another look at our comments on the Dollar Menu.
In a recent letter to fellow Operators a member of an RLC wrote,
"Our finances are under pressure and will most likely continue to stay
that way." The letter went on to encourage Operators to hurry and sign
up for more MRPs!
An obvious Oak Brook form letter but is this the kind of schizophrenic
financial advice one gets for their McDonald's franchise fees?
The challenges of 2013 and 2014 could not have been imagined five years
ago and sticking to a corporate agenda developed a decade ago may do a
lot harm.
.
December 4, 2012
December 3, 2012
55 Year Old Whopper for 55¢
To celebrate its 55 year anniversary, a line of limited-time-only Whopper Sandwiches
has been unveiled.
Sounds a little like the "McDonald's Campaign 55"
QSR Magaine reports HERE
.
has been unveiled.
Sounds a little like the "McDonald's Campaign 55"
QSR Magaine reports HERE
.
December 1, 2012
Opinion on McDonald's from Crains Chicago Business
"But how many customers lured by ads for a $1 cheese-burger will shell out four
times that for an Angus burger? Lower prices won't help McDonald's franchisees
already struggling to preserve profits as food costs rise. This is the inherent tension
in the company's relationship with franchisees: McDonald's takes its money off the
top as a percentage of restaurant sales, while franchisees pocket what's left over
after paying all the expenses of running the restaurants."
times that for an Angus burger? Lower prices won't help McDonald's franchisees
already struggling to preserve profits as food costs rise. This is the inherent tension
in the company's relationship with franchisees: McDonald's takes its money off the
top as a percentage of restaurant sales, while franchisees pocket what's left over
after paying all the expenses of running the restaurants."
McDonald's is losing sales as Burger King and Wendy's rebound - Crain's Chicago Business:
.
November 25, 2012
November 19, 2012
New Product and Discounting News at McDonald's
New Quarter Pounders, Egg White McMuffin, and Value Meals as Loss Leaders
"Five Under $5"
"Five Under $5"
- Big Mac, medium fries, medium soft drink
- Quarter Pounder with Cheese, medium fries, medium soft drink
- Filet-O-Fish, medium fries, medium soft drink
- 10-Piece Chicken McNuggets, medium fries, medium soft drink
- Two Cheeseburgers, medium fries, medium soft drink
November 15, 2012
McDonald's Ousts US President After Sales Drop
If Oak Brook is going to throw the USA President under the bus every time sales
are soft then Jeff Stratton will be in the job about 90 days because the comps this
winter are very tough!
McDonald's ousts US president after sales drop - Yahoo! Finance:
.
are soft then Jeff Stratton will be in the job about 90 days because the comps this
winter are very tough!
McDonald's ousts US president after sales drop - Yahoo! Finance:
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Goodnight Ladies
first time in many years, the operational side of the McDonald's management team is an all male club.
Tweet of the Day
Howard Penney @HedgeyeHWP
Memo to Jeff Stratton pres of @McDonald's USA: be realistic with people about how
difficult sales trends will be for the next 5 months$MCD
difficult sales trends will be for the next 5 months
.
November 13, 2012
Despite Sales Stress McDonald's to Continue Remodels
"Some investors complain that McDonald's and its franchisees are spending too much
money to make their restaurants looks spiffy at a time when cash is hard to come by.
But McDonald's said remodeled restaurants in the U.S. are seeing a 6% to 7% sales
lift above their local markets after a year."
Don Thompson addresses investor conference HERE
.
money to make their restaurants looks spiffy at a time when cash is hard to come by.
But McDonald's said remodeled restaurants in the U.S. are seeing a 6% to 7% sales
lift above their local markets after a year."
Don Thompson addresses investor conference HERE
.
November 12, 2012
Just When You Thought You Were Safe From the Politics
to find Attorney General Eric Holder's
brother employing undocumented
workers.
Carolina Journal reports HERE
November 9, 2012
Happy Birthday to the McDonald's Dollar Menu
It seems like yesterday McDonald's Operators were tussling with Jack Greenberg
over launching the Dollar Menu with the Big N' Tasty but it's been ten years!
Dollar Menu History HERE:
.
over launching the Dollar Menu with the Big N' Tasty but it's been ten years!
Dollar Menu History HERE:
.
November 8, 2012
Has McDonald's Menu Gotten Too Expensive?
How can Oak Brook expect to get $5.00 for premium sandwiches and still offer
the Dollar Menu?
Has McDonald's Menu Gotten Too Expensive? - DailyFinance:
.
the Dollar Menu?
Has McDonald's Menu Gotten Too Expensive? - DailyFinance:
.
November 7, 2012
Giving Away Food Always Causes Problems
A special deal on French fries at McDonald's in Japan has sparked a teen consumer
craze fueled by social media.
French Fry Deal Sparks Potato Parties
craze fueled by social media.
French Fry Deal Sparks Potato Parties
Carrols New Burger Kings Needed Some Work
Any McDonald's franchisee who has taken over a McOpCo store will be
able to relate to the problems Burger King's largest franchisee is having
with former company stores.
Carrols New Burger Kings Needed Some Work
.
able to relate to the problems Burger King's largest franchisee is having
with former company stores.
Carrols New Burger Kings Needed Some Work
.
November 6, 2012
Why Restaurants' Discounts Aren't Working
NPD expert: “Weaning customers off deals is going to be very difficult,” Riggs said.
“And they’re going to have high food inflation hitting after the first of the year. How
they add value and drive traffic (in that environment) is going to be a real challenge.”
From Restaurant Finance Monitor
Why Restaurants' Discounts Aren't Working:
.
“And they’re going to have high food inflation hitting after the first of the year. How
they add value and drive traffic (in that environment) is going to be a real challenge.”
From Restaurant Finance Monitor
Why Restaurants' Discounts Aren't Working:
.
November 5, 2012
McDonald's Bureaucrats Getting Their Equity Out
Last week COO Tim Fenton exercised his option on 28,315 shares at an
average of
$45.02 per share or $1,274,741.
.
November 2, 2012
November 1, 2012
October 30, 2012
John Kujawa E-mail on McDonald's Bankruptcies
He's right there are not many bankruptcies in McDonald's but that's more about the
way the franchise agreement is written than anything to do with financial solvency.
We don't give legal advice here but we have talked to more than a few McDonald's
Operators who made the decision to file for bankruptcy. We can report that nearly
every one of those Operators (former Operators) found it to be a huge mistake.
Based on these discussions we can make a few basic recommendations. If you or any
McDonald's Operator you know is considering this as a strategy:
* Read and re-read your franchise agreement.
* Reread your franchise disclosures.
* Obtain multiple legal opinions from multiple sources.
* Explore ALL other options with your advisers.
* Do not expect to have any control or influence over the court or the process.
* Do not expect to embarrass McDonald's Corporation.
.
way the franchise agreement is written than anything to do with financial solvency.
We don't give legal advice here but we have talked to more than a few McDonald's
Operators who made the decision to file for bankruptcy. We can report that nearly
every one of those Operators (former Operators) found it to be a huge mistake.
Based on these discussions we can make a few basic recommendations. If you or any
McDonald's Operator you know is considering this as a strategy:
* Read and re-read your franchise agreement.
* Reread your franchise disclosures.
* Obtain multiple legal opinions from multiple sources.
* Explore ALL other options with your advisers.
* Do not expect to have any control or influence over the court or the process.
* Do not expect to embarrass McDonald's Corporation.
.
Payday for McDonald's CEO & Pres USA
 |
A few days earlier McDonald's VP Jan Fields exercised
her option on 26,400 shares at $35.25 per share and
immediately sold a total of 50,090 shares for a value of
$4,439,977.
October 29, 2012
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October 28, 2012
Crain's on the Dollar Menu
Crain's Chicago Business is running an article pointing out the problem with food
inflation and maintaining the $1.00 price point. At this time the link is for subscribers
but we'll post one when available. Meanwhile enjoy a couple of quotes from the article:
inflation and maintaining the $1.00 price point. At this time the link is for subscribers
but we'll post one when available. Meanwhile enjoy a couple of quotes from the article:
"The more you focus on value, the more difficult it is to raise prices on premium
products, " Mr. Spieser says. (Mitch Spieser is an analyst at Buckingham Research)
products, " Mr. Spieser says. (Mitch Spieser is an analyst at Buckingham Research)
"Franchisees overwhelmingly support the Dollar Menu, which they helped create",
says Heather Oldani, McDonald's senior director of U.S. communications.
.
says Heather Oldani, McDonald's senior director of U.S. communications.
.
October 27, 2012
Is the Dollar Menu the Answer to Tough McDonald's Comps?
There's been a lot of discussion in the press about Oak Brook's plan to
re-emphasize the Dollar Menu and "Value". We've expected a lot of discounting to
overcome the warm weather comps from the winter of 2011/2012 and have joked with
analysts about seeing the Big Mac on the Dollar Menu. But, listening to Don
Thompson's comments and reading analyst's notes, maybe that's not all that funny.
After all, the Dollar Menu was launched in 2002 with the Big N' Tasty as the
headliner.
.
Chipotle Seen Becoming McDonald’s With Drive Thrus
appetite for year over year growth.
The price of going public.
Chipotle Seen Becoming McDonald’s With Drive Throughs - Businessweek:
October 25, 2012
October 22, 2012
October 20, 2012
A Loss for Many People
Regretfully we must report the passing of veteran Arizona McDonald's Operator
Bill Konopnicki.
Bill's Obituary and other information is here
.
Bill Konopnicki.
Bill's Obituary and other information is here
.
October 19, 2012
October 17, 2012
October 15, 2012
Drought Leads Restaurants to Raise Prices
"And this summer, a Big Mac cost $4.33 on average in the U.S., up from $4.20 in
January and $4.07 a year earlier, according to the popular Big Mac index compiled
by the Economist. Those increases will continue, but at a faster pace."
Really? when one can buy four or five $1.00 sandwiches for the price
of a Big Mac?
The L.A. Times Reports
.
January and $4.07 a year earlier, according to the popular Big Mac index compiled
by the Economist. Those increases will continue, but at a faster pace."
Really? when one can buy four or five $1.00 sandwiches for the price
of a Big Mac?
The L.A. Times Reports
.
October 12, 2012
October 11, 2012
Poultry in Motion?
“As beef prices have risen and will continue to do so, many chain restaurants’ menu R&D efforts have shifted to chicken… as a way to offer innovation around a protein that is less expensive than burgers or other forms of beef,” Hayden says. Yes, the escalating cost of livestock feed will make chicken prices go up, too, but the increase won’t be as steep.
Big Bird: Why Fast Food Companies Are Suddenly In Love With Chicken | Moneyland | TIME.com:
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Big Bird: Why Fast Food Companies Are Suddenly In Love With Chicken | Moneyland | TIME.com:
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October 8, 2012
October 3, 2012
McDonald's Coffee Beans Could Soon Be Sold To-Go
How would that build sales at the restaurants?
Oh - it wouldn't - never mind.
McDonald's Coffee Beans Could Soon Be Sold To-Go:
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Oh - it wouldn't - never mind.
McDonald's Coffee Beans Could Soon Be Sold To-Go:
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October 1, 2012
September 27, 2012
Durable Goods and McDonald's Sales
It was at least twenty years ago that our Co-Op saw a presentation from Oak Brook
"experts" who observed that over the years McDonald's benefited from an increase
in durable goods orders in the United States. Hedgeye Research just released a report
charting durable goods since 1997.
The HEDGEYE report is HERE
(Clicking on the chart brings up a larger and easier to read version)
Durable goods were generally positive in the late 1990s but McDonald's missed out on
that trend because of the cannibalization of the Convenience Strategy and the impact
of slow service times resulting from "Made For You". The increases beginning in 2003
are reported to be because of the "Plan to Win" but it looks like durable goods might also
have contributed to this success. Durable goods took a huge dip in 2009 and that was the
softest year out of the last ten for same store sales at McDonald's USA. I've made the case
that sales were poor in 2009 because McDonald's Operators wasted their advertising $$$
on espresso based drinks. But, there were strong economic headwinds.
While sales at McDonald's USA don't track perfectly with durable goods it's an interesting
metric to watch.
.
September 26, 2012
September 25, 2012
IFA Leads Coalition to Defeat Michigan Bill
Association is to defeat any Federal or State legislation
that might give legal rights to franchisees.
Of course, McDonald's Corp. is a major player in the IFA.
From the IFA's Blog
September 14, 2012
September 13, 2012
Jan Talks PFEs
Leaks about McDonald's marketing plans usually come from the various ad agencies.
This time it's Jan Fields on national TV divulging OPNAD's promotional food events.
CNBC video is here >>> Jan Fields Unplugged
.
This time it's Jan Fields on national TV divulging OPNAD's promotional food events.
CNBC video is here >>> Jan Fields Unplugged
.
Howard Penney at Hedgeye Tweets...
If 20% of @mcdonalds customers gravitate to this menu b/c of listing calories $MCD will have an average check problem. twitter.com/HedgeyeHWP/sta…
— Howard Penney (@HedgeyeHWP) September 13, 2012
September 12, 2012
Bigger is Not Better
It's long been my position that one of the reasons McDonald's dominates
the QSR industry is that McDonald's Operators in the USA have a
relatively small number of restaurants in a defined geographic location.
The article below features a Burger King franchisee who owns 400 Burger
Kings spread between Dallas and Orlando, 50 Arby's and Popeye's in Texas
He also owns most of the CiCi's in Houston and 33 Golden Corrals.
How can a such a franchisee compete with a bunch of six store McDonald's
Operators in his markets?
Good for him that he owns hundreds of restaurants but this is the reason
visits to Burger Kings are usually a disappointment.
Guillermo Perales is profiled HERE
.jpg)
the QSR industry is that McDonald's Operators in the USA have a
relatively small number of restaurants in a defined geographic location.
The article below features a Burger King franchisee who owns 400 Burger
Kings spread between Dallas and Orlando, 50 Arby's and Popeye's in Texas
He also owns most of the CiCi's in Houston and 33 Golden Corrals.
How can a such a franchisee compete with a bunch of six store McDonald's
Operators in his markets?
Good for him that he owns hundreds of restaurants but this is the reason
visits to Burger Kings are usually a disappointment.
Guillermo Perales is profiled HERE
.jpg)
September 11, 2012
McDonald's Sales Bounce Back on Value Deals
"McDonald's has been intensifying its "messaging around value," noted Andy Barish, a
Jefferies analyst. For example, he noted that the company ran promotions for its breakfast
Dollar Menu in mid-August."
The Associated Press: McDonald's sales bounce back on value deals:
.
Jefferies analyst. For example, he noted that the company ran promotions for its breakfast
Dollar Menu in mid-August."
The Associated Press: McDonald's sales bounce back on value deals:
.
September 10, 2012
September 7, 2012
Caution - Sales Bump Ahead
This chart from a recent Hedgeye note on McDonald's illustrates the hill that McDonald's
and other chains have to climb this winter. The blue is the past 12 months and the red is
an average of the past two years. Of course the highest increase was in February partially
created by a 29 day month. (For a larger picture click here) >>> Hedgeye Chart
September 6, 2012
Streamlined Fast Food Menus Attract Customers
Readers of QSR Magazine will be familiar with the monthly column written by former
McDonald's marketing guy Roy Bergold. This month he discusses menu proliferation.
"Expanded menus really mess up your QSC and Value."
Streamlined Fast Food Menus Attract Customers - QSR magazine:
.
McDonald's marketing guy Roy Bergold. This month he discusses menu proliferation.
"Expanded menus really mess up your QSC and Value."
Streamlined Fast Food Menus Attract Customers - QSR magazine:
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September 5, 2012
September 3, 2012
August 30, 2012
New McDonald's Locations
We've posted an opinion piece concerning the development of new McDonald's
stores in the United States. At the top of our homepage, in the black bar below the
pretty picture, click on "Was McDonald's USA Saturated 15 Years Ago?"
.
stores in the United States. At the top of our homepage, in the black bar below the
pretty picture, click on "Was McDonald's USA Saturated 15 Years Ago?"
.
August 29, 2012
August 24, 2012
Analysis of Don Thompson
"McDonald's is increasingly positioning itself as the Wal-Mart of fast
food, using its unmatched power in raw material procurement and passing
on the scale advantage to customers by outpricing its competitors. This
might work against McDonald's to an extent, as customers learn to see
the company as very low-tier and move to better restaurants when the
times get better."
Seeking Alpha Speculates HERE
.
Seeking Alpha Speculates HERE
.
August 23, 2012
August 21, 2012
August 12, 2012
If We Could Talk to the Analysts, Just Imagine It!
I've come across a few friends who have not noticed one of our sub-pages titled
"The Real Franchise Stakeholders". Just click on that title in the black bar at the
top of this page. Let me know what you think!
.
"The Real Franchise Stakeholders". Just click on that title in the black bar at the
top of this page. Let me know what you think!
.
August 10, 2012
August 9, 2012
August 6, 2012
August 4, 2012
Small Firms See Pain in Health Care Law
"franchisees are looking at ways to avoid the requirement by cutting
workers'
schedules so they work fewer than 30 hours a week—the law's definition of a
part-time worker —since only full-time workers are counted toward the insurance
coverage requirement."
"A question for franchisees is whether the federal government will count their
employees based on the combined number at all their outlets or treat each outlet as
a separate business."
WSJ Reports HERE
.
schedules so they work fewer than 30 hours a week—the law's definition of a
part-time worker —since only full-time workers are counted toward the insurance
coverage requirement."
"A question for franchisees is whether the federal government will count their
employees based on the combined number at all their outlets or treat each outlet as
a separate business."
WSJ Reports HERE
.
August 3, 2012
Combo Meals Down By A Billion
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For several years, speaking as a customer, I've been commenting that McDonald's
food has gotten too expensive relative to the avalible value offerings. I know
there have been changes to the Dollar Menu but then offers like the $1.00 drink
come along. This summer I've enjoyed my $1.00 ice tea and an item or two off the
Dollar Menu. My average check is always $3.00 or less.
Time magazine is reporting on data from the NPD Group that says sales of larger
combo meals have decreased 12% over the past five years.
NPD restaurant industry analyst Bonnie Riggs says, “The number-one reason
they said they stopped is that the dollar menu is a better deal.” Customers who
used to buy combo meals but don’t anymore discovered that “you can ‘bundle’
from the value menu and it is a cheaper price.”
The point? As long as I can build a meal for $3.00 or $4.00 there's no way I'm
paying $6.00 or $7.00. The McDouble is an excellent sandwich and the McChicken
is a nice change of pace. I don't think I've had a Big Mac yet this year and I know
I haven't had a QPC - but on many occasions I've eaten two McDoubles.
Again, as a customer, I'll show up in many McDonald's restaurant's customer counts
but not at the bottom of the P&L.
Time reports HERE
August 2, 2012
July 27, 2012
July 25, 2012
July 23, 2012
You Can See McDonald's Future From Here
For many years I've encouraged McDonald's franchisees to pay
attention to the quarterly conference calls between McDonald's
executives and Wall Street analysts. I don't think too many
took my advice.
But, today's call is significant because of the drought, foods costs
and competitive pressures. This call contains revealing comments
from management and some really interesting questions from the
analysts.
If McDonald's Operators want a look into the next 18 months you
really should read the transcript of today's call. Or, you can listen
to the playback on the investor section of the McDonald's website.
Seeking Alpha transcript is HERE
.
attention to the quarterly conference calls between McDonald's
executives and Wall Street analysts. I don't think too many
took my advice.
But, today's call is significant because of the drought, foods costs
and competitive pressures. This call contains revealing comments
from management and some really interesting questions from the
analysts.
If McDonald's Operators want a look into the next 18 months you
really should read the transcript of today's call. Or, you can listen
to the playback on the investor section of the McDonald's website.
Seeking Alpha transcript is HERE
.
CNBC - MCD to Go On Offensive on Value
This is an interview with an analyst who explains very succinctly
that McDonald's can win a price war because the franchisees
spend so much money on advertising.
The McDonald's discussion is about four minutes into this 10
minute video, but it's worth the wait.
Rachael Rothman on McDonald's
.
that McDonald's can win a price war because the franchisees
spend so much money on advertising.
The McDonald's discussion is about four minutes into this 10
minute video, but it's worth the wait.
Rachael Rothman on McDonald's
.
Analysts - More Discounting at McDonald's
Some smart people quoted in this article.
Howard Penney, managing director of investment research firm Hedgeye Risk
Management says: “McDonald's can't ever go back to the Dollar Menu.
It's permanently gone.”
Kate MacArthur reports for Crain's Chicago Business
.
Howard Penney, managing director of investment research firm Hedgeye Risk
Management says: “McDonald's can't ever go back to the Dollar Menu.
It's permanently gone.”
Kate MacArthur reports for Crain's Chicago Business
.
July 22, 2012
McDonald's of India to Lower Prices 6-15%
The last sentence in this article is profound:
"The move is line with the fast food giant's international positioning of value and affordability, with more stress on volumes than margins."
The Economic Times reports HERE
.
"The move is line with the fast food giant's international positioning of value and affordability, with more stress on volumes than margins."
.
July 20, 2012
Chipotle Down
"Chicken is just corn with feathers"
News on Chipotle is HERE
July 19, 2012
It's Going to be a Hard Candy Christmas?
When announcing "disaster" areas due to the drought USDA Secretary Tom Vilsack
said: "ranchers were most seriously affected and he expects the prices of beef,
poultry and pork "may go down a bit, but over time they will rise."
In other words, restaurants may get some relief this summer but just about the time
the industry comes up against the tough comps caused by the warm weather of
winter 2011/2012 the corporate folks will be pushing for discounting and coupons to
keep same store sales from going negative.
Yikes!
Dow Jones Reports HERE
.
said: "ranchers were most seriously affected and he expects the prices of beef,
poultry and pork "may go down a bit, but over time they will rise."
In other words, restaurants may get some relief this summer but just about the time
the industry comes up against the tough comps caused by the warm weather of
winter 2011/2012 the corporate folks will be pushing for discounting and coupons to
keep same store sales from going negative.
Yikes!
Dow Jones Reports HERE
.
July 10, 2012
Somebody Likes Being on Camera!
Why would the world's largest restaurant chain post their
proprietary recipes on YouTube ?
Next we'll see Coke reveal their contents and KFC
disclose the Eleven Herbs and Spices.
>>> The Oak Brook chef tells all
.
proprietary recipes on YouTube ?
Next we'll see Coke reveal their contents and KFC
disclose the Eleven Herbs and Spices.
>>> The Oak Brook chef tells all
.
July 4, 2012
The Former Oak Brook Liberal Who Brought You Obamacare
"While Kindler was tending to politics, he wasn’t tending to Pfizer"
Pfizer’s Political CEO - Betsy Woodruff - National Review Online:
.
Pfizer’s Political CEO - Betsy Woodruff - National Review Online:
.
July 2, 2012
June 29, 2012
Strange McBedfellows II
In this political environment we suggest McDonald's franchisees take another look
at how their political contributions are being spent.
Revisit our posting on this issue here
.
at how their political contributions are being spent.
Revisit our posting on this issue here
.
June 27, 2012
June 25, 2012
McDonald's or Burger King? Ask Jim Cramer...
I'm loving this ... CNBC's Jim Cramer comments on Burger King's expansion plans. He states:
"Burger King clearly knows how to play the trading game. They just put out a release saying they are going to build 1000 stores in China.
What a great way to juice a stock since you don't actually have to build them.
You just have to talk about them."
You just have to talk about them."
Thanks for telling the truth Jim!
CNBC video is HERE
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June 23, 2012
Burger King, the Cash Cow
In my humble opinion - in five years we will no longer be referring to Burger King
as a major player in the QSR industry. Here's the history of the "financial engineering"
that is destroying that company.
>>> The New York Times Comments
“Burger King has had 13 chief executives in 25 years"
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as a major player in the QSR industry. Here's the history of the "financial engineering"
that is destroying that company.
>>> The New York Times Comments
“Burger King has had 13 chief executives in 25 years"
.
June 22, 2012
June 20, 2012
June 19, 2012
Store Wars With Burger King?
Today McDonald's execs presented at an investor
conference admitting
that customer traffic will be difficult to grow
near term. So, if they can't
make investors happy with increased
same-store-sales it's necessary
to increase the number of outlets.
Management announced they will open 1,300 new
stores in 2012. How
does that compare to recent years?
Here's the global and USA rate for the past four
years:
2008 - 590 (56 USA)
2009 - 511 (62 USA)
2010 - 259 (47 USA)
2011 - 773 (71 USA
These are the number of stores operating at year's
end so it includes the
net of openings less closings. We assume the
1,300 discussed by
management is an increase in the total numbers of stores operating.
Hopefully very few of these new stores will be in
the over saturated USA.
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Not Enough Company Stores?
“Too many franchisors are bailing out on running
the company restaurants
‐ John Hamburger, Restaurant Finance Monitor, May 22, 2012
and that is going to be a problem down the
road. Maybe it coincides with
so many deal guys getting into
the restaurant business. A deal guy can’t
tell a grease trap from a mop
sink, but sure knows that collecting royalties
is better than paying
them”
‐ John Hamburger, Restaurant Finance Monitor, May 22, 2012
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