Coalition of Franchisee Associations

August 21, 2017

August 19, 2017

Easy McMoney

On August 8, 2017

McDonald's VP Joseph Erlinger exercised an option on 10,793 shares of MCD at $57.08 - $63.25 and immediately sold the shares for $154.44 per share for a profit of approximately $1,017,870.00

On August 13, 2017

McDonald's VP David Ogden Fairhurst exercised an option on 4,782 shares of MCD at $57.08 and immediately sold the shares for $157.05 per share for a profit of approximately $478,057.00
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August 8, 2017

Don't Mess With The NYPD

NYPD Steps Up Boycott of Dunkin' Donuts After Cops Refused Service
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Nobody Builds Any Equity Without Real Estate Tenure

If the Lake Forest IL store is only 20 years old that means it would have been developed
and opened during the "Convenience Strategy", a misguided effort to impress Wall Street 
by building too many new stores in all the wrong places.

In the 1970s and 1980s McDonald's Corp. did an excellent job of negotiating the
purchase of new sites or obtaining long term leases. Leased sites always had the initial 
20 years set in stone with decades of options after the first 20 years. If management 
couldn't be sure there would be a McDonald's at that location in perpetuity there was 
no deal.

The idea that a store would be built with an opened ended rent number at the end of 
20 years was extremely rare or unheard of.

But that changed during the Convenience Strategy - deals were rushed, inexperienced
real estate people were hired, and uniformed brokers became involved. Many deals 
were, in a word, sloppy.

I don't know anymore about this store's lease than what's contained in this article but
McDonald's Operators should be wary of stores opened in the mid-1990s and should 
become educated on the exact status of each store's real estate. And don't accept the 
verbal representations of McDonald's corporate employees. They won't know a top 
lease from a ground lease.

High rent pushes out Lake Forest McDonald's
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August 6, 2017

Restaurant Analyst John Gordon Looks At Delivery

Your mileage may vary

For a QSR franchise John uses a 5.5% "royalty" so he probably assumes the 
franchisee is paying a fixed amount for rent, not a percentage. McDonald's 
Operators would probably want to add 8/10/12% to that line item.

The "Ad Fund" line would probably be higher.

John uses a delivery commission of 25% - Yikes!

As you can see, even with a $12.00 average check this doesn't work for a QSR 
and it works marginally for a casual dining location, even with a $57.00 check.
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America's Top 50 Fast Food Restaurants

Ranked by QSR magazine
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August 2, 2017

McCashing In - Summer Edition

On July 26, 2017

McDonald's VP J. Krulewitch exercised an option on 11,755 shares of MCD at $75.93 
and immediately sold the shares for $158.38.

McDonald's VP Kevin Ozan exercised an option on 25,322 shares of MCD at $57.08 
and immediately sold the shares for $158.50.

McDonald's VP Douglas Gore exercised an option on 17,286 shares of MCD at $75.93 
and immediately sold the shares for $158.50.

McDonald's VP Fred Borden exercised an option on 4,820 shares of MCD at $56.64 
and immediately sold the shares for $158.37.

Source: Nasdaq.com
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Source: Fox News

Texas Roadhouse’s Thumb's Down On Delivery

“We encourage all of our competitors to do as much delivery as they can so they 
can deliver lukewarm food to their people,” 

Texas Roadhouse’s contrarian view of delivery
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