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Richard Adams

Richard Adams
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  • McDonald's pricing gets even more interesting [View news story]
    McDonald's will always have "scattered" pricing because they have the most franchisees with the most stores and those franchisees set their menu prices. McDonald's can make suggestions, and they do so through an arms-length consulting company, but in the end the franchisees make the pricing decisions.
    Mar 27 01:53 PM | 1 Like Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    Tom - there are 2300 (aprox.) individual MCD franchisees in the USA running some 13,000 plus restaurants so once in a while somebody will screw up. But, it's not an epidemic. The MCD franchise agreement says that the franchisee will comply with all laws, local and federal so if someone does screw up they are responsible for any penalties and usually end up leaving the McDonald's system. Also, keep in mind, unlike BKW & WEN and most other chains a MCD franchisee in the USA is likely a local business person who is well known in the communities they serve. If they were cheating their employees word would get around very fast and it would become tough to get help. And they'd lose a lot of customers.
    Mar 25 07:32 PM | Likes Like |Link to Comment
  • Don't Sell McDonald's Stock Because Of 2 Minimum Wage Myths [View article]
    Absolutely right John - franchisees can't be left to absorb every negative impact. If that's allowed the entire system suffers. Not only remodels slow down but marketing $$$ are squeezed, staffing is reduced hurting service,
    etc. etc. It's called a franchise "system for this reason.
    Mar 25 07:09 PM | Likes Like |Link to Comment
  • Busy week for McDonald's attorneys [View news story]
    This is simply a transparent campaign by the labor unions and coordinated with the White House. There will be some negative press along the way but they are not going to unionize any McDonald's. And, a McDonald's franchisee would be crazy to break labor laws. Their franchise agreement requires the obey all laws, federal and local. So it would be very short sighted to nickle and dime your employees and put your entire business at risk. It is funny that the CEO of McDonald's gave Obama $30K in 2008. And now Obama sends the SEIU after McDonald's. Thanks pal!
    Mar 13 06:40 PM | 1 Like Like |Link to Comment
  • McDonald's: Americans Aren't 'Lovin' It' Like They Used To [View article]
    Good work on this article. Sales trends in the USA since the "Dollar Menu and More" tell us nothing because of the bad winter. Snow and ice have a huge impact on traffic and most of us are surprised that February wasn't down 3% or 4%. Everyone is making far too much of this millennial thing. Every generation is different but writers are acting like they are a new species of human. And the millennials are enjoying all the attention.
    Mar 12 06:43 PM | Likes Like |Link to Comment
  • McDonald's: The Present Scenario [View article]
    This writer is something of a drama queen. Frantically seeking top line growth can be very destructive for a chain that already has higher average unit volumes far above the other publicly held competitors.
    Mar 11 02:02 PM | Likes Like |Link to Comment
  • McDonald's: Business Model, Valuation And Minimum Wage Legislation [View article]
    The minimum wage was never meant to be a "living wage". It's a starting point or entry level. If the leftists (driven by the unions) get their way and make it a living wage and keep pushing it up the inflation will do great damage to the country.
    Feb 26 07:25 PM | 11 Likes Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    You are right, McDonald's will continue to be the leader and that's why there is so much press coverage when a competitor makes a move. The headlines use words like "battle" or "war".
    Feb 25 01:16 PM | Likes Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    Wendy's has started and stopped a breakfast roll-out three times. Don't think it's ever going to happenn.
    Feb 24 03:03 PM | 1 Like Like |Link to Comment
  • The fast-food breakfast war is on [View news story]
    Due to already high volumes McDonald's will not be able to make extended breakfast operations work without further slowing service. It appears that McDonald's executives are so far removed from of what's really going on in the restaurants that they'll actually consider destructive changes like extending breakfast.
    Feb 24 02:38 PM | Likes Like |Link to Comment
  • McDonald's eyes longer breakfast hours [View news story]
    Many McDonald's serve breakfast in the over night-hours. It works there because the customer traffic is low and easy to handle. When customers are in the morning commute or have a half hour for lunch - speed of service is everything.
    Feb 24 01:03 PM | Likes Like |Link to Comment
  • McDonald's eyes longer breakfast hours [View news story]
    Can't be done. If MCD management was foolish enough to pursue this it will drive away customers, not attract them. And please don't respond with "Jack in the Box does it". The average MCD does twice the sales of a JIB and is struggling to keep up with the customer traffic and operational complexities. Yes, there are a few people who would buy and Egg McMuffin for lunch but McDonald's cannot be all things to all people.
    Feb 24 12:00 PM | 2 Likes Like |Link to Comment
  • Fast casual chains drive by drive-through concept [View news story]
    "Local Panera here has a drive-thru and looks busy most of the time."

    Maybe the service is just really slow?
    Feb 21 12:49 PM | Likes Like |Link to Comment
  • McDonald's: Stick To The Basics [View article]
    <"Many franchisees in the U.S. have been hesitant to engage in remodeling costs involved with the McCafe strategies, which include buying expensive, $13,000 espresso machines.">

    This is completely untrue. There was some hesitation in 2008 but since 2009 every McDonald's in the USA that can have the McCafe area and the espresso machines has offered espresso drinks. You are absolutely correct that espresso doesn't sell. Franchisees tell me that they sell so few espresso drinks it doesn't pay for the electricity to keep the machine running all day.

    The five year espresso battle is over - Starbucks won. Investors should be angry when they see McDonald's wasting precious advertising dollars on espresso.
    Feb 12 05:14 PM | Likes Like |Link to Comment
  • McDonald's: Still Offering A Decent Upside Potential [View article]
    Investors should not look at the remodeling / rebuilding program at McDonald's as a guaranteed panacea. Remodeling and staying up to date has been a part of the McDonald's culture since the late 1960s. Therefore the current sales softness at McDonald's in the USA cannot be attributed to outdated facilities that turn off customers.

    I recently visited with a McDonald's franchisee who spent nearly a million dollars remodeling a McDonald's building that was built in 1995. Of course they changed the exterior to the new look, completely redid the dining room, upgraded the drive-thru, etc. The remodel was completed four months ago and aside from a modest blip the first two weeks the restaurant is showing a zero sales increase over last year. Why? The restaurant just didn't need to be remodeled. It was fine as it was.

    This is a far different situation than Burger King or Wendy's who have many run-down buildings and beat up dining rooms (especially Burger King). Remodeling those old stores would probably yield a sales increase. Whereas McDonald's franchisees have always kept their facilities up to date and comfortable.
    Feb 12 05:00 PM | 2 Likes Like |Link to Comment