EXCELLENT ANALYSIS. But the corporation is tone deaf and will not listen. The NFLA and OPNAD are rendered mute. The outlook does not have a happy ending for owners. No wonder so many are getting out, with more to follow. Stockholders should bail and sell, NOW! .
Go read the history and comments in this Blog. NFLA and OPNAD have sold their souls for more restaurants. While normal Owner/Operators get brow beat with excessive visits and inspections with unrealistic standards. Chris K. and Joe E. think they can walk on water. Chris K. now has all the keys as CEO and Chairman. Real bad times are ahead as his plans are not achieving good results.
Do you think he has a plan? Beyond Accelerating the Arches which is pretty much McSpin for Wall Street. When MCD watchers ask me about this management team and what franchisees think, I usually respond that I don't know if this team has been tested yet. It may seem like they've been around forever, but it's only been a little over four and a half years. And those have been unusual years. Keep in mind they took over in November 2019. The COVID-19 pandemic hit the following March. The next two years were oddities, and I don't remember corporate people doing anything special. MCD USA survived the pandemic due to the heroic efforts of MCD Owners and their drive-thrus. Weren't the next two years (2022 and 2023) driven by the inflation of menu prices? And now that we are back in the real world their only solution is to do the same kind of discounting that management was selling Operators in the mid-1990s? Are "his plans" having an impact?
Spot on analysis, Richard. Hopefully, the existence of the NOA in the present can help to right the ship. The real voice of the real owners of the brand.
WHY would anyone risk investing in mcd and becoming a operator to get SUBSTANDARD RETURNS?? Corp has openly stated that they want to get per store cash flow down to $350k which will further destroy equity.
Excessive reinvestment on perfectly good assets like 10 year dining rooms destroys owner equity and cash flow Meanwhile savvy competitors like CFA are investing in much needed drive thru enhancements.
10 comments:
EXCELLENT ANALYSIS. But the corporation is tone deaf and will not listen. The NFLA and OPNAD are rendered mute. The outlook does not have a happy ending for owners. No wonder so many are getting out, with more to follow. Stockholders should bail and sell, NOW! .
Chris and Joe believe operators are easily replaced, “ like Uber drivers ” Actual quote
As the article suggests, there are unfortunately far too many operators who will shut up and take this without a word They have a death wish.
If I were looking for a franchise investment today, no way would I go with mcd.
Go read the history and comments in this Blog. NFLA and OPNAD have sold their souls for more restaurants. While normal Owner/Operators get brow beat with excessive visits and inspections with unrealistic standards. Chris K. and Joe E. think they can walk on water. Chris K. now has all the keys as CEO and Chairman. Real bad times are ahead as his plans are not achieving good results.
Do you think he has a plan? Beyond Accelerating the Arches which is pretty much McSpin for Wall Street.
When MCD watchers ask me about this management team and what franchisees think, I usually respond that I don't know if this team has been tested yet. It may seem like they've been around forever, but it's only been a little over four and a half years. And those have been unusual years.
Keep in mind they took over in November 2019. The COVID-19 pandemic hit the following March. The next two years were oddities, and I don't remember corporate people doing anything special.
MCD USA survived the pandemic due to the heroic efforts of MCD Owners and their drive-thrus.
Weren't the next two years (2022 and 2023) driven by the inflation of menu prices?
And now that we are back in the real world their only solution is to do the same kind of discounting that management was selling Operators in the mid-1990s?
Are "his plans" having an impact?
Where am I off base?
.
crumble cookies?
Spot on analysis, Richard. Hopefully, the existence of the NOA in the present can help to right the ship. The real voice of the real owners of the brand.
WHY would anyone risk investing in mcd and becoming a operator to get SUBSTANDARD RETURNS?? Corp has openly stated that they want to get per store cash flow down to $350k which will further destroy equity.
Excessive reinvestment on perfectly good assets like 10 year dining rooms destroys owner equity and cash flow Meanwhile savvy competitors like CFA are investing in much needed drive thru enhancements.
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