"Franchisees’ cash flow, meanwhile, has increased for eight straight months. By May, higher cash flow had already eclipsed last year’s decline in cash flow—a decline that prompted operators to form an independent franchisee association.
Ozan said that “more stability in the restaurants” is helping drive labor efficiency, while the higher sales are improving profitability."
Remodels push McDonald’s sales higher.
2 comments:
Cashflow is increasing, as G&A expenses fueled by increased LOAN COST are always viewed as OWNER DRAWS (cashflow) by the company. Its Cash flowing - just not to the operator. A easy view when your cut comes from the TOP LINE, not the BOTTOM LINE.
It was not the decline in cash flow that caused the NOA. We have been through declines in cash flow before. What caused the NOA was the heavy-handed methods of Chris K. and Easterbrook forcing reinvestments and borrowing that was unprofitable and poorly conceived. The NOA has been effective mainly by the threat that other operators in other countries will do the same. The operators through the NOA are well represented like never before. It is now in the company best interest to bring the operators to the table early in the process.
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