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
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Skinner Expects More "Affordability"

McDonald's outgoing CEO 'very concerned' on Europe - MarketWatch:
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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."

Thanks for telling the truth Jim!

CNBC video is HERE
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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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Franchisees Going Back To Single Brands

Franchisees Going Back To Single Brands:
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Jefferies Equity Research on MCD Presentation

Andy Barish reports
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Burger King Goes Public, Again

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These constant restructurings are going to destroy the BK brand
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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

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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McDonald's Global Comparable Sales Rise 3.3% In May

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McDonald's Global Comparable Sales Rise 3.3% In May -- OAK BROOK, Ill., June 8, 2012 /PRNewswire/ --:

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McDonald's Warns on Declining Consumer Confidence

McDonald's Corp. warns on declining consumer confidence | Nation's Restaurant News:

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Doritos Taco Most Successful Taco Bell product — Ever

Doritos taco most successful Taco Bell product — ever - Fast Food Maven : The Orange County Register:

Visits to U.S. Restaurants this Winter Strongest Since Spring 2008

Visits to U.S. Restaurants this Winter Strongest Since Spring 2008, Reports NPD – NPD:

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Taco Bell Introducing Upscale Menu

Will Taco Bell customers "Buy Up"?

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McDonald's Equity "Sweet Spot"

Most McDonald's Operators have seen a recent brochure advertising three stores 
for sale.

Click HERE for brochure

I've argued for years that there is much more to pricing McDonald's stores than cash

flow ratios.While not passing judgment on the asking price of these stores this package

does have a "Sweet Spot".

The "Sweet Spot" is the length of the remaining franchise terms (12 yrs, 10 yrs, 14 yrs).

These years give a buyer some time to justify required reinvestments triggered by the 

sale before having to worry about a rewrite.


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