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Richard Adams

Richard Adams
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  • McDonald's Has Activist Jana Partners As An Investor, So What? [View article]
    "giving local franchisees more control over tailoring service/menu/marketing to local markets." ..... This may or may not produce positive results. McDonald's is a 60 year old company and for the past 30 years it's been a very top-down culture. In the USA the company is divided into 22 regions based on geography and 160 plus advertising co-ops determined by media penetration. The corporate employees and franchisees are conditioned to taking orders from the home office. Creative and entrepreneurial types have been flushed out of the McDonald's system. Can the people in the field immediately switch from being good bureaucrats to creative types overnight? They could do more harm than good. The real purpose for this McSpin is to take the spotlight off the CEO and his home office team.
    Nov 19, 2014. 05:04 PM | Likes Like |Link to Comment
  • Rebuttal: McDonald's Isn't Unhealthy For Your Portfolio If 5% Growth Actually Happens [View article]
    "management appears to be aware of the problems facing the company" - true enough, but there's no evidence they know what to do about the problems. So far they appear to be determined to "reinvent" McDonald's and are risking breaking the McDonald's business model to gain a few % in sales growth.
    Nov 15, 2014. 03:51 PM | 3 Likes Like |Link to Comment
  • The CEO May Be McDonald's Secret Sauce [View article]
    McDonald's is not in a "crisis", they just have found it difficult to increase what are already huge average unit volumes. The biggest risk here is that management will try to "reinvent" McDonald's trying to please fussy shareholders.
    Nov 15, 2014. 03:12 PM | 1 Like Like |Link to Comment
  • The CEO May Be McDonald's Secret Sauce [View article]
    "He plans to add employees to assist in achieving a lower wait time." The CEO does not dictate staffing levels. The franchisees do that and they will not add staff to make up for poor corporate decisions.
    Nov 15, 2014. 02:22 AM | 10 Likes Like |Link to Comment
  • McDonald's Obsession With Starbucks [View article]
    History has shown that once McDonald’s executives achieve a certain level (probably when they get a personal limo) they no longer want to be “hamburger guys”, they want to be “restaurateurs”. This mindset drove management to run around acquiring other, more upscale chains, in the 1990s and it’s why they became obsessed with Starbucks in this century. Everybody in Oak Brook wants to be Howard Schultz.
    Nov 13, 2014. 05:18 PM | 3 Likes Like |Link to Comment
  • McDonald's Obsession With Starbucks [View article]
    McDonald's sells a lot of coffee, especially at the drive-thru during breakfast, but that's drip coffee. McCafe was originally about espresso and espresso drinks at McDonald's have been a massive failure. In fact, in terms of equipment costs, remodeling costs, and few billion $$$ in wasted advertising spending espresso drinks are the biggest new product introduction failure in the history of McDonald's.

    McDonald's franchisees tell me they don't sell enough espresso drinks to pay for the electricity to run the espresso machine.
    Nov 13, 2014. 05:05 PM | 5 Likes Like |Link to Comment
  • McDonald's Obsession With Starbucks [View article]
    They tested that extensively. There were dozens of test restaurants that had a separate "bistro" that served an entirely different menu and McCafe. All failed and were removed. Hence the downsized coffee corner next to the drive-thru.
    Nov 13, 2014. 04:24 PM | 1 Like Like |Link to Comment
  • Finally, Some Good News For McDonald's. Now Is The Time To Buy [View article]
    McDonald's is not going to "simplify" the menu or their operation. Instead, as mentioned in their press release, they are going for more "customization". This company is being run by people who know nothing about the restaurant business. They will continue to screw up the operation and stagnant sales.
    Nov 11, 2014. 01:30 PM | 1 Like Like |Link to Comment
  • The Case For McDonald's Potential Acquisition Of Chipotle: If You Can't Beat Them..Buy Them [View article]
    The problem with MCD expanding into other brands is that MCD is not run by restaurant people but by bureaucrats, accountants, and lawyers who have no idea what happens in a restaurant kitchen. Remember the late 1990s when MCD bought a handful of small chains, screwed them up, and sold them for a loss.
    Oct 24, 2014. 12:51 PM | Likes Like |Link to Comment
  • Here Are 2 Things McDonald's Can Do To Increase Shareholder Value Right Now [View article]
    McDonald's didn't get to be the industry giant by copying weak competitors like Burger King.
    Oct 9, 2014. 04:42 PM | 8 Likes Like |Link to Comment
  • McDonald's August Sales: A Not So Happy Meal [View article]
    Comp sales were even worse considering that August 2014 had five full weekends (5 fri, 5 Sat, 5 Sun) something that happens only a few times a decade and for sure didn't happen in August 2013.
    Sep 10, 2014. 03:21 AM | Likes Like |Link to Comment
  • Update: McDonald's Sales Look Disturbing [View article]
    That gentleman has six months to pull it together, but it's a big, maybe impossible, job.
    Sep 9, 2014. 05:00 PM | Likes Like |Link to Comment
  • (Un)Happiness At McDonald's? Outlook Not So Tasty In 2014 [View article]
    Speaking as someone who's served a few million customers out of a McDonald's drive-thru window - those cars "will" pull out of line and go elsewhere.
    Sep 9, 2014. 03:24 PM | 1 Like Like |Link to Comment
  • (Un)Happiness At McDonald's? Outlook Not So Tasty In 2014 [View article]
    Hence the use of the would "could".
    Sep 8, 2014. 10:51 AM | Likes Like |Link to Comment
  • (Un)Happiness At McDonald's? Outlook Not So Tasty In 2014 [View article]
    Drive-thru lines wrapped around the building could just mean slow service and a screwed-up operation. Many of those cars will pull out of line and visit a faster competitor.
    Sep 7, 2014. 01:09 PM | Likes Like |Link to Comment
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