"Chris Kempczinski's plan to shift additional costs to franchisees seems certain to intensify their mistrust of a CEO they viewed skeptically even before the fast-food giant promoted him to the top job a year ago."
WHEN will the operators realize that MCD goals and Operator goals are diametrically opposed?
MCD wants top line sales growth (thats where they make more Rent & Service Fees $$$),and therefore push unprofitable discounting. The Operators goals are bottom line focused to maximize profits and cash flow. Incompatible expectations, yet the sheeple we elect keep caving to the company.
This is just another way for the Company to advance their attempts to sever the relationships with the operators. It has little to do with their own cost control. They fire the former CEO and hand him fifty million dollars without doing due diligence. There are a multitude of areas where they can cut costs. Their own bureaucracy is so fat, cumbersome that they could cut 25% of it and never miss them saving millions of dollars. They are discreetly doing things to older operators to move them out of the system which will likely end up with them paying more cash out because they are stupid. The company has lost so much credibility not only with the operators but with many long time vendors, the public, customers. Without cause they have declared war on the operators they can't even explain what their objectives are. Does anyone know?
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WHEN will the operators realize that MCD goals and Operator goals are diametrically opposed?
MCD wants top line sales growth (thats where they make more Rent & Service Fees $$$),and therefore push unprofitable discounting. The Operators goals are bottom line focused to maximize profits and cash flow. Incompatible expectations, yet the sheeple we elect keep caving to the company.
Never fear. McDonald’s stands ready and able to help you reduce your equity while increasing their own. Recent moves proved that.
Its been said here before: Sell the restaurants, Buy the stock.
This is just another way for the Company to advance their attempts to sever the relationships with the operators. It has little to do with their own cost control. They fire the former CEO and hand him fifty million dollars without doing due diligence. There are a multitude of areas where they can cut costs. Their own bureaucracy is so fat, cumbersome that they could cut 25% of it and never miss them saving millions of dollars. They are discreetly doing things to older operators to move them out of the system which will likely end up with them paying more cash out because they are stupid. The company has lost so much credibility not only with the operators but with many long time vendors, the public, customers. Without cause they have declared war on the operators they can't even explain what their objectives are. Does anyone know?
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