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Richard Adams

Richard Adams
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  • McDonald's Recent Moves: Why I'm Not Lovin' Them [View article]
    I think we can be sure the product will be excellent. For the past dozens years + McDonald's has done a good job with new product development. They learned from the Arch Deluxe.

    It's just that they have too many products.
    Sep 6 11:52 PM | 1 Like Like |Link to Comment
  • McDonald's Recent Moves: Why I'm Not Lovin' Them [View article]
    McDonald's kitchens are bogged down with menu complexity resulting in slow service that turns customers away. And they should add more menu items, more sides and sizes? The people who run the restaurants know they should do the exact opposite. Cut the number of menu items by 25% immediately, in 2014 phase out another 10% to 15% in 2014 and also in 2015. Then we might begin
    to see some growth.
    Sep 6 08:42 PM | 1 Like Like |Link to Comment
  • McDonald's Real Estate Model Realities [View article]
    John - One should not assume McDonald's "owns" all that property. For the past 25 years much of the USA new store property has been purchased by a REIT owned by a handful of McDonald's suppliers. The property is then leased to McDonald's and then sublet to the
    franchisee. McDonald's real estate empire is something of an urban myth.
    Aug 9 11:50 AM | 1 Like Like |Link to Comment
  • McDonald's Real Estate Model Realities [View article]
    It's doubtful we'll see any rent concessions. Since McDonald's is always the landlord it's easy to find new tenants. Franchisees are expendable. Not a good business model but that's the way McDonald's has evolved.
    Aug 8 03:01 PM | 1 Like Like |Link to Comment
  • Franchisees at McDonald's getting testy [View news story]
    There are few, if any, run-down stores in McDonald's USA. Franchisees are being forced to tear down or remodel perfectly good buildings with a good chance there will be no sales increase. And,
    after that expense, McDonald's still controls the building and land.
    Aug 6 04:17 PM | Likes Like |Link to Comment
  • A move by the Obama administration to delay until 2015 a requirement that businesses with more than 50 employees provide health care insurance bodes well for the restaurant industry. The sector was expected to be amongst the hardest hit by the legislation due to its high employee-to-sales ratio. Restaurant operators breathing easier: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SONC, WEN, BWLD, THI, BDL, NATH, [BKW, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, BKW [View news story]
    No matter what happens in the 2014 election Obama will spend the last two years of his term blaming conservatives for depriving people of health care.
    Jul 3 02:57 PM | Likes Like |Link to Comment
  • Is McDonald's Out Of Tricks? [View article]
    McDonald's menu is already too large and complex to be efficient. Slow service is one reason sales increases have been so hard to come by. Anyone who thinks McDonald's can serve breakfast all-day is - A) Naive about the restaurant business & B) Rarely ever visits a real McDonald's, especially during lunch.
    Jun 13 06:28 PM | 2 Likes Like |Link to Comment
  • McDonald's (MCD) is considering removing more items from its menu to become streamlined, according to information tipped off by a franchisee. Fruit & Walnut salads, Chicken Selects and Angus burgers have already been selected for elimination while Caesar salads, the McSkillet Burrito, and steak bagels could also be on the copping block. The streamlining moves falls in line with a new focus from the company on costs and its value menu. [View news story]
    Too bad nobody bought it.
    May 17 09:08 AM | Likes Like |Link to Comment
  • Can McDonald's (MCD -0.6%) reinflate same-store sales with its plan to focus on value pricing and swap in new quarter pounder products for Angus burgers? Many Wall Street profit estimates on McDonald's bank on a summertime bump from the menu innovation, but the volume of sales will have to be high to offset the shift to lower-margin items. What to watch: An early August release on July sales will be crucial. [View news story]
    A focus on "value" drives down the average check which drives down profits. The McDonald's franchised business model is broken.
    May 16 12:46 PM | Likes Like |Link to Comment
  • McMarket Share: How The Golden Arches Could Benefit From Obamacare [View article]
    Are you thinking that a McDonald's pays a fixed rent? While every McDonald's (USA) has a minimum rent payment (base) once they get to a certain sales level they begin pay a percentage rent. There are very few McDonald's in the USA paying base rent. Most pay a percentage that depends on age but the average appears to be 12% to 13% of sales plus a 4% royalty.
    May 9 05:22 PM | 1 Like Like |Link to Comment
  • McDonald's (MCD -0.5%) is considering expanding its breakfast menu to an all-day service, according to a Bloomberg TV report. The idea has been shot down in the past because it raises the logistical issue of how to cook hamburgers and eggs on a grill of a limited size, but the temptation is increasing with the company claiming 25% of the breakfast market share on solid traffic. [View news story]
    There are far too many people working in McDonald's upper management who have never worked in a restaurant.
    May 6 02:44 PM | 1 Like Like |Link to Comment
  • Why McDonald's Growth And Momentum Is Set To Stall [View article]
    My expanded comments on how McDonald's Service became broken are here:
    Apr 23 06:11 PM | Likes Like |Link to Comment
  • Why McDonald's Growth And Momentum Is Set To Stall [View article]
    McDonald’s is rather slowly rolling out a change to service called Dual-Point. The customer orders at one end of the counter and picks up their food at the other end when their number flashes on a display.

    It's not a panacea but a much needed step towards improving the customer experience and reducing frustrations on both sides of the counter.

    McDonald’s Watchers who want same store sales increases at McDonald's USA should encourage and “pressure” management to make Dual-Point happen ASAP. If every McDonald’s restaurant in the country has Dual-Point by year's end there will surely be a positive impact on sales in 2014.
    Apr 23 05:58 PM | 1 Like Like |Link to Comment
  • McDonald's Struggles In The First Quarter [View article]
    "New store"s in international markets. The USA is built out.
    Apr 23 10:20 AM | Likes Like |Link to Comment
  • RBC raises its price target on Outperform-rated McDonald's (MCD -0.6%) to $107 from $98 citing a projected improvement in margins of 130 basis points going forward. When asked about the "third straight year" of declining margins by Goldman analyst Michael Kelter, CFO Peter Bensen said on the call that there were more important considerations given the lack of growth in the industry: "Would we love higher margins? Yes, but in this environment, guest count growth and market share growth are [what is] critical." (transcript[View news story]
    Nice of the MCD CFO to throw franchisees under the bus in the name of market share. Restaurant operators don't make money on "guest counts", they need to sell food at a profit to survive.
    Apr 22 03:31 PM | Likes Like |Link to Comment