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?
5 comments:
Anonymous
said...
That comment is 1000% true. Corp could not care less whether you make a profit or not. They get paid off the top line sales, irregardless of profit. And OPNAD and the coops blindly follow corps lead, passing more and more discounting under the guise of "cash flow: Operators who fall for that are delusional. Theres a reason Cuban has amassed four billion dollars!
And the "cash flow" argument is also flawed the way corporate pitches it. They frame cash flow improperly, BEFORE EBITDA. (earnings before interest, taxes, depreciation, and amortization) The only true measurement of cash flow should be AFTER EBITDA. Ask any accountant. BTW if you look at your cash flow AFTER EBITDA, you will see that it has actually declined the past ten years due to excessive discounting , increased reinvestment expense, corporate cost shifting, and inflation. Dont fall for the lie.
That's the vise MCD USA Operators are in. Management must keep investors convinced that McDonald's is a growth company - a 70-year-old system with 42,000 restaurants a growth company? Only if you squeeze really hard. .
The system is in dire need of leadership from McDonalds, from it's Board, from analysts who have to see what is happening, not the scorn and disdain that owners are experiencing today. Corps 'selective targeting" tactics of who they want in, and out, of the system have never been more biased and retaliatory. Without a change in the current trajectory of the relationship with our franchisor, the "partnership" is a cruel joke and officially dead. I intend to boycott the World Wide Conventions, and increasingly many of my colleagues will be doing the same, as they know who is responsible for the real success. We will meet as Owners alone, before the fabricated conventions, but it is of no use to try and repair a relationship without leaders trying to restore the greatness that once was McDonald's
5 comments:
That comment is 1000% true. Corp could not care less whether you make a profit or not. They get paid off the top line sales, irregardless of profit. And OPNAD and the coops blindly follow corps lead, passing more and more discounting under the guise of "cash flow: Operators who fall for that are delusional. Theres a reason Cuban has amassed four billion dollars!
And the "cash flow" argument is also flawed the way corporate pitches it. They frame cash flow improperly, BEFORE EBITDA. (earnings before interest, taxes, depreciation, and amortization) The only true measurement of cash flow should be AFTER EBITDA. Ask any accountant.
BTW if you look at your cash flow AFTER EBITDA, you will see that it has actually declined the past ten years due to excessive discounting , increased reinvestment expense, corporate cost shifting, and inflation. Dont fall for the lie.
That's the vise MCD USA Operators are in. Management must keep investors convinced that McDonald's is a growth company - a 70-year-old system with 42,000 restaurants a growth company? Only if you squeeze really hard.
.
The system is in dire need of leadership from McDonalds, from it's Board, from analysts who have to see what is happening, not the scorn and disdain that owners are experiencing today. Corps 'selective targeting" tactics of who they want in, and out, of the system have never been more biased and retaliatory. Without a change in the current trajectory of the relationship with our franchisor, the "partnership" is a cruel joke and officially dead. I intend to boycott the World Wide Conventions, and increasingly many of my colleagues will be doing the same, as they know who is responsible for the real success. We will meet as Owners alone, before the fabricated conventions, but it is of no use to try and repair a relationship without leaders trying to restore the greatness that once was McDonald's
Join NOA. Save your profitability.
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