MCD

[Dividend Watcher]

I would really hate to be MCD's management trying to figure out what the customer wants. Everyone complains about the low quality/taste of their food yet when they bring something better to market it gets ignored.

They had the Angus burgers which tasted pretty good, especially the swiss mushroom Angus burger. It was only about $5 IIRC. Didn't sell and was dropped from the menu. Their chicken wings were spicy enough to get your attention. Of course, at least around here, you couldn't get bleu cheese dressing to dip 'em in but still they didn't sell. The biggest complaint I read about was they were too spicy. Ha! Their full-size wraps are pretty good, especially the sweet chili, but again they aren't selling. The McRib's not bad but I'll bet if they kept it on the menu, people would get tired of it and it would be relegated to the dust bin. The Kids Meals sell because there's a toy inside -- not because of the wholesome meal their child is getting.

MCD's specialty is quick service food that gets rid of your hunger (or as I tell the wife, it makes a $%*#) and gets you on your way. You're not going to MCD for a special dinner with your date or family to enjoy a good meal or as a prelude to a night at the theater.

I think they need to simplify the menu to what they sell the best and offer seasonal specials such as the McRib or Shamrock Shakes. They also need to focus more on the franchisee's operations. Around here, most of the stores are the new format that offers a more relaxed atmosphere with subdued lighting at night. We have one that is the styled after the 70's restaurant but with a 50's drive-in motif with antique muscle cars parked outside (oh that old t-bird is pretty) and retro uniforms and posters inside. All are clean and well-maintained which speaks well to our local franchisor. Yet when I drive outside our local area I find many restaurants that are dirty, are in mediocre locations, have the late-90s/early-00 buildings and are slow to serve the customer.

I'm also so tired of the food nazis telling everyone what they should eat and drink. If you don't like it, don't go there.

There is a market for MCD. In the village my wife's business is located, they had a restaurant that opened that served specialty burgers, bison/elk/venison as well as prime beef, hand cut fries, hand made salads, etc. Prices were a little higher but not outrageous. We ate there a couple times and it was really tasty. It was located in a newly-built shopping center in the center of town with lots of parking. This village is not a bunch of poor people living outside a big city. It's a bedroom community where a lot of LMT, healthcare and insurance executives live and has an InBev plant in town. Yet within 3 years, they went out of business, and Mickey D's is still there with a steady stream of traffic.

I can't speak to outlets outside the U.S. but that's what I've noticed on the home front. So, all that to say they need to "stick to their knitting" and focus on operations.