"Does anybody have the gifts to stand up and say that the absurd app discounting equates to completely unprofitable transactions? The last few days have resulted in 10 percent guest count increases with no sales increases and a rise in base food of over .3 percent to basically give away chicken nuggets and double cheeseburgers. All done to fix their mistakes on faulty McCafĂ© machines and bad supply chain that caused Ecoli…. Can’t wait for the new mcvalue menu!"
December 19, 2024
December 17, 2024
December 16, 2024
McDonald's vs. FBI
McDonald's surpasses FBI in shooters apprehended in 2014
"Not again," sighed Director Wray, handing over his resignation. "I don't know how McDonald's does it. How did they beat us at arresting shooters, all while making perfectly crispy fries, a solid breakfast, and surprisingly good coffee? We just can't compete with the golden arches." (Babylon Bee)December 14, 2024
This No Way to Run a Growth Company
Maria Bartiromo interviews Northern California Owner Scott Rodrick
McDonald's owner closes two CA locations due to minimum wage hike
How Does My Menu Grow?
The worst way to gather customer feedback is to go to the internet. Comments and reviews are so cluttered with bizarre and phony comments the dialogue means nothing. This has ruined consumer reporting in that reporters can spend a few minutes online, pulling down a few negative comments and come up with a headline saying, "Social media is aflame!" or "Customers are crying out for_____."
December 13, 2024
McDonald's Ends Year on Strange Note - Maze
Trump, Ecoli, CosMc's, Altoona, $5 Meal Deal etc, etc.
Ecoli - "It prompted the company to invest $100 million, including $35 million for marketing and the rest to help franchisees whose sales were hurt the most."
December 11, 2024
Democrats Fail to Dominate NLRB
Senate votes out McFerran, considered to be the architect of Joint Employer
Under Trump, three of the five members of the NLRB could be Republicans.
December 9, 2024
And It Happens Fast
It could be AI, but this happened only a few hours ago, and already we have the memes.
December 8, 2024
December 6, 2024
Anonymous says:
Anonymous has left a new comment on our post "Value Meals Killing Our Bottom Line".
To quote billionaire Mark Cuban, “ too many businesses concentrate on sales rather than profit, which ultimately leads to their failure”. ARE YOU LISTENING?California Lost 4,256 Jobs: Feds
"According to Revenue Management Solutions, a company that analyzes restaurant transactions to optimize menu pricing, California menu prices in June were up 7.5% year-over-year, but foot traffic is down — nationwide menu prices were up 3.1% with foot traffic down 3.6% compared to the year prior. This decline is a clear indication that customers are opting to skip a fast food visit altogether rather than pay higher menu prices,” said RMS. The Center Square - California
December 2, 2024
November 29, 2024
Is This a Good Thing? ... Or Bad?
November 26, 2024
Breaking: Subway CEO to "Retire"
Did franchisee resistance force him out?
Or, maybe, when your only ideas are more and more discounting you become useless?
November 25, 2024
November 22, 2024
Maze on McValue
McDonald's launching "McValue" next year
“We worked closely with our franchisees to create a new platform that will let our customers define value on their own terms.” Pres. MCD USA
November 21, 2024
California Voters Reject Min. Wage Increase
Let's not get too excited. California's history is that the voters speak, and the elected officials go around the voters and pass bad laws anyway. Or, the bureaucrats in Sacramento make up regulations that have the force of law.
Measure would have raised wage to $18, highest in the nation
November 18, 2024
Opinion From the International Franchise Association
By Matt Haller, President of the IFA
And Who Did McDonald's Corporate Employees Vote For?
November 17, 2024
Do They Represent the American Diet?
With the sanctimonious talk about the American diet, here are two of the most popular entertainers in our culture today.
Country Western Star Jelly Roll and rapper Lizzo. Good examples for our youth, right?
November 15, 2024
McDonald's HQ Being Gracious?
Related to the onion outbreak:
The Wall Street Journal reports that McDonald's is "investing about $35 million into marketing for its U.S. business" and "a total of $65 million into supporting franchisees who have lost business."
November 13, 2024
November 12, 2024
I've always said you have to be stoned to invest in a vegan restaurant
Mr. Charlies is often referred to as the vegan McDonald's
Parent company of Mike Tyson’s cannabis brand buys vegan franchise
November 11, 2024
November 7, 2024
C-stores struggle against QSR Discounting
"Among c-store operators who consider their foodservice programs to be in direct competition with QSRs, three-quarters said they are specifically concerned about McDonald’s value meal offerings on their own traffic and sales for foodservice"
November 6, 2024
QSR Breakfast Inflation - Marketwatch
Quotes our friend analyst Mark Kalinowski
November 2, 2024
Boeing Grounds DEI
Elon Musk on DEI: “Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening,” Musk said on X.
In a subsequent post, Musk wrote: “People will die due to DEI,”
Boeing dismantles DEI department - NY Post
November 1, 2024
Wendy's to Close 140 Stores
Attempting to Convince Shareholders that QSRs are a Growth Industry
* In most chains, new stores typically pay higher franchise fees and royalties than older stores.
* As Wendy's has acquired many franchisees over the years, the corporation has likely developed a real estate portfolio that needs trimming. In many locations, a QSR is not the highest and best use of a property. Wendy's (and other chains) can close the store, sell the property, and book a tidy gain. Let the franchisee pay to build a new store down the street and pay higher fees.
October 31, 2024
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October 27, 2024
Democrats Blame Trump for E.coli Outbreak
"That man stuck his hands in the fries, and McDonald’s had E.coli like the next day,"
October 26, 2024
Political Payback From D.C.
We've posted a lot of fun items this week, but this might be the best. Three elderly politicians think they can understand how a franchise system determines pricing. Not even their brightest young aid can make them understand. This is like V.P. Harris. She keeps trying to throw money around, but it's obvious she doesn't understand the difference between a tax deduction for a small business and a direct cash payment from the government. She also doesn't understand that small businesses don't need a tax deduction for many tax years, especially start-ups.
Three Democrat Senators attack McDonald's for hosting Trump visit
October 25, 2024
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Trump Now One in Eight
October 19, 2024
You're on Fries Mr Trump
This sounds like fun, so I may be jealous, but it could backfire with international repercussions. McDonald's dodged a bullet in Israel with an ownership change, but these days it's risky to have a potential U.S. President appear to have a favorite global restaurant brand. Plus, McDonald's USA serves millions of Democrats every day.
Isn't this contrary to the Election Season guidelines published earlier this year?
October 18, 2024
October 16, 2024
Harris Asks for Job Back at McDonald's
Immediately after leaving the Fox News interview, Kamala Harris called McDonald’s to see if she could, by chance, get her old job back.
October 14, 2024
October 12, 2024
All I Know is What I Read in the Wall Street Journal
October 10, 2024
October 9, 2024
McDonald's Corp Sues Meat Suppliers
Allegedly conspiring to fix the price of beef
Occasionally, McDonald’s Corp. gets a little slap-happy with litigation. Like a hammer thinking everything looks like a nail, the legal department thinks every corporate challenge looks like a possible lawsuit.
This “management by bullying” peaked in the late 1990s when the company was suing everyone and threatening every Owner/Operator. Part of the problem was that one of McDonald’s directors was a prominent Chicago attorney who was a partner at a prominent Chicago law firm. Conveniently, said firm handled most of the company’s litigation.
This compulsion fizzled out around the turn of the century with all the changes in CEOs and directors.
If they give a pajama boy an unlimited legal budget, it can be a control freak’s dream. Let’s hope not.
October 5, 2024
National Companies Running From DEI
- The list grows - Molson Coors, Ford Motor Co, John Deere, Lowe's, Harley-Davidson, Tractor Supply Co. and more.
- Toyota latest company to move away from DEI
October 3, 2024
September 28, 2024
MCD Shares Break Records
Back in June, we discussed, with some alarm, that McDonald's share price had drifted down to the mid-$200 range.
Is anyone watching the MCD stock price? - 6/18/24
We should now recognize that the MCD share price has finally topped $300 over the past week, driven by market momentum and an announced increase in the MCD dividend.
However, in the longer term, the increase comes from investors' confidence that McDonald's Owner/Operators will continue to follow corporate discounting plans.
Congratulations to MCD shareholders.
September 27, 2024
September 21, 2024
September 19, 2024
Don't Miss This Comment...
Anonymous says:
The original post is at:
September 17, 2024
Are We Done With McHarris?
This is one last post about the Kamala Harris and McDonald's issue. It seems to have run its course, and I'm told she isn't going to use McDonald's in her commercials anymore. That doesn't mean Trump/Vance won't still mention it, but probably with less frequency. It is disappointing that news reporters in their 20s and 30s expect businesses to produce employment records from forty years ago. Of course, if Kamala hadn't ever worked at McDonald's, there would be nothing to reveal.
Harris touts her time working at McDonald's. Will it help? - LA Times
September 14, 2024
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September 4, 2024
Former McDonald's VP Makes Good
It doesn't happen that often that a former McDonald's exec goes on to a successful position elsewhere. Debbie Stroud appears to be the exception.
Whataburger CEO retiring - Stroud takes post - Rest Business
https://www.linkedin.com/in/debbie-stroud-88149540/details/experience/
September 3, 2024
Life is Political - Like it or Not
Kamala Harris' claim that she once worked for McDonald's continues to attract considerable attention. So far, McDonald's Corp. has responded with "no comment." While this is dangerous ground because no corporate favor can be shown to any candidate, isn't this a chance to reinforce the fallacy of the Joint Employer concept?
Shouldn't one of the pajama boys be able to put together a statement that says, "These people don't work for us, and we know nothing about them?" And/or "We don't keep records of franhiceee's employees?"
A proper nonpartisan statement would be better than leaving the questions hanging, which only allows the media to speculate that McDonald's Corp. is hiding something.
McDonald's is getting a lot of attention on the campaign trail - Yahoo
September 2, 2024
High End Burger Chains Struggling
And McDonald's management is focused on testing a larger, more expensive hamburger?
August 29, 2024
Who Actually Owns McDonald's?
It's good to review these numbers once in a while - Yahoo Finance
Insiders? - Less than one percent of outstanding shares
August 28, 2024
Does Taxing "Unrealized Gains" Include Business Equity?
This $100 million excludes many people, but it gets the government involved in measuring a citizen's level of wealth. Where else do they do that? Your bank does it - does the IRS? This takes me back to Trump's first Presidential campaign when the liberal media was frantic to get hold of his tax returns. They thought they could determine his net worth from his returns.
For taxpayers with $100 million in total wealth - CATO Institute
August 25, 2024
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August 16, 2024
Raise Wages and Energy and Then Complain About Inflation
There are only a few baby steps between government controlling grocery store prices and government controlling restaurant menu prices.
Price controls could create more problems than they solve - CNN
August 14, 2024
August 13, 2024
Wall Street Journal on McDonald's Politics
The WSJ looks at McDonald's Owner's recent lobbying attempts, apparently directed by a guy named Gonda. Warning - paywall.
August 12, 2024
August 10, 2024
August 8, 2024
Go Big or ???
Peter Romeo from Restaurant Business with a 10 minute podcast about McDonald's history. One correction, if I heard him right he has the McDLT after the Arch Deluxe. Actually, the McDLT was introduced in the 1980s, the Arch Deluxe was from the mid-1990s.
Otherwise, it's very educational if you are being asked to invest in a new product.
August 5, 2024
August 1, 2024
McBears and Bulls
Some have observed that we've been paying a little more attention to the stock market lately, particularly McDonald's (MCD) shares. That would be correct.
Over the decades, when McDonald's was a growth company, the factors that impacted the MCD share price have been numerous and complex. Be it new products, more new stores, fewer new stores, drive-thrus, playplaces, promotions, pandemics, etc.
But these days, it's pretty simple. The most important thing will be same-store sales in the United States. International markets will play a part, but Wall Street will judge the company's performance based on what happens in the USA. It's doubtful new products will be a factor, and major remodels will be impossible to sell, so it comes down to one thing - how much discounting will domestic Owners/Operators be willing to accept?
It will be easy to draw a straight line between U.S. same-store sales and MCD share price. It's going to be a simpler but more interesting time.
July 31, 2024
Big Arch Included in the $5.00 Meal?
Promoting a large, expensive new sandwich is odd when everything else is about "value." The food cost on such a sandwich will necessitate a substantial retail price.
However, investors demand a new product pipeline and this will keep them satisfied for a while. Very few MCD watchers understand that the system can't sell high-end products while distracting customers with deep discounts.
July 29, 2024
July 28, 2024
No Beef For You!
The topic, particularly on red meat, has resurfaced since Harris became the presumptive Democratic nominee for the presidency.
July 26, 2024
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July 15, 2024
FTC Tells Franchisors - No Junk Fees
"The agency also said that franchisors can’t take action against franchisees that take complaints about the business to the government."
July 13, 2024
July 12, 2024
July 11, 2024
Anonymous McGossip on X
@McFranchisee (Twitter - formerly @MCDtruth) claims that the typical
U.S. store will receive one case of 250 Black Garlic packets. Is that worth
while of a promotion? Sounds like a half-day supply.
Picture courtesy of @mcfranchisee - click to enlargeJuly 9, 2024
Barbell Strategies
During one of the previous burger wars, a QSR corporate head (I think he was from Burger King) coined the phrase "Barbell Menu." The term was used to describe pricing that brought customers into the restaurant with the hope they'd forego the discount and move up to more profitable menu items.
Today, we have a different "barbell menu" this one is more of a corporate strategy. The only "new" idea the corporate guys can come up with is discounting. But they can't admit to investors that price-off is their only idea, so they'll try to deflect attention to new product promotions. This works well because analysts and reporters are always expecting new product news. And, if there is no new product news, they'll criticize management for not having a "healthy product innovation pipeline".
If the discounting works, management will credit the new products. If sales haven't improved, they’ll blame the American consumer.
And everyone else in the system will be left asking, “How did our menu get so big and complicated?”
July 8, 2024
McDonald's NASCAR Chicago Street Race
Well, it wasn't really a "McDonald's" race, the first Chicago NASCAR race (2023) just looked that way based on photos and videos. I watched most of last year's race live and was surprised at how much visibility the McDonald's logo received. McDonald's banners covered many of the walls and barriers that made up the racecourse. These banners always seemed to be on camera. I couldn't help but wonder how much this cost.
Later, I learned the facts. Because it rained for much of the race, the TV cameras installed on high-up scaffolding or on the sides of buildings were temporarily disabled, leaving the ground-level cameras to cover the race. This meant shooting straight across the course with the racecars in the foreground and the McDonald's banners constantly in the background.
It sure looked like a race entirely sponsored by McDonald's.
July 5, 2024
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‘Zarco Law Awarded “Best Law Firms” National Tier 1 in Franchise Law by Best Lawyers of America© as listed in US News and World Report’
June 22, 2024
June 20, 2024
Bloomberg on McDonald's $5.00 Meal Deal
“Think about our scale,” he (Elinger) said, noting that the incremental cost of adding fries and a drink to a sandwich was minimal.
McDonald's $5.00 value meal intensifies a fast food price war
June 18, 2024
Is Anyone Watching the MCD Stock Price?
This year, the price has drifted from $300 to $250. Only two things can turn that around: * several miracles in international markets or * McDonald's Owner/Operators in the USA can discount their menus and invest in promotions until same-store sales turn around.