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.
3 comments:
My Disclaimer: This is not and will not become an investment website. No one should make financial decisions based on the information posted here. The articles and comments posted here are about the corporate culture of various companies, not their financial performance.
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As long as Chicago continues to be obsessed with the shareholders and the stock price, and continues to abuse the franchisees and devalue our equity and profitability, the future looks bleak. There is no partnership. There is no longer a three legged stool. The most successful franchise system in history is being destroyed by myopic, greedy Mcd management. SAD
Given current economic climate, expect mcd to announce a new round of layoffs soon to deliver even less services to the system.
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