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MCD
#31
Here is an article on Seeking Alpha where the author discusses some possibilities. He mentions that the new CEO starts this weekend, on March 1st.

http://seekingalpha.com/article/2952876-...-yesterday
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#32
Despite surveys that show the millennial generation turning away from McDonalds, the recent Morgan Stanley report shows otherwise.

"McDonald's is still the most visited restaurant for the demographic, according to analysts at Morgan Stanley."
"In other words, millennials are going to McDonald's, but they aren't likely to admit to it."

http://finance.yahoo.com/news/millennial...43259.html
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#33
I don't admit it either! But I figure owning the stock gives me a reason to go there once in awhile!
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#34
(04-07-2015, 03:53 PM)Dundey Wrote: I don't admit it either! But I figure owning the stock gives me a reason to go there once in awhile!

I'm not super proud of my Mickey D's runs, but I enjoy it as an occasional indulgence. I also lie to myself and call it market research. Tongue
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#35
Mcdonald's cardboard tasting fare has little to offer me, though do like their fries. If I'm going to waste calories on a burger, it is going to be a good one. Locally, Rushes is a hundred times better than any McD's burger. More nationally, Five Guys kills both burgers and fries from McD's.

I'm afraid McDonalds is destined for eventual irrelevance. They also have problems with too many private franchise owners, as corporate has little control over quality and service.
Alex
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#36
(04-08-2015, 07:52 PM)hendi_alex Wrote: Mcdonald's cardboard tasting fare has little to offer me, though do like their fries. If I'm going to waste calories on a burger, it is going to be a good one. Locally, Rushes is a hundred times better than any McD's burger. More nationally, Five Guys kills both burgers and fries from McD's.

I'm afraid McDonalds is destined for eventual irrelevance. They also have problems with too many private franchise owners, as corporate has little control over quality and service.

WOW, news flash; a $13.00 hamburger and fries taste better than a $4.00 hamburger with fries.

Big city, 5 guys has a chance to survive. All other parts of the country they are not even a bug on McD's windshield.
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#37
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.
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How do they get the deer to cross at that yellow road sign?

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#38
My burger and fries from Five Guys cost under $8 and the fries are adequate for a group of 3-4. More importantly, the burger is delicious as opposed to dry and flavorless. Quarter pounder delux is the closest thing to a liittle burger. With large fry, is about a buck less than Five Guy meal, less the quality and flavor. To each his/her own.

MCD may transform itself yet again, but I'll pass. Too many barbarians at the gate, too much change in what consumers are demanding. If I own MCD it will be via an ETF which includes mostly big cap dividend payers.
Alex
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#39
I think all of your points are valid, Alex, and (if you believe the headlines, anyway) a lot of other people seem to agree. But no matter how much I read, I just can't bring myself to worry about MCD. Every time I look there are plenty of customers there, and eventually, they'll hit on a tweak to the formula that gets them back on track again (even if that means some variant on "back to the basics"). They've got top-notch real estate all over the planet, and the earnings lull and stock action just don't bear out the "McDonald's is doomed" story. Sometime in the next two to six years, the tide will turn and all we'll see are headlines praising MCD's execution, the share price will advance into the $120s, where it will "languish" for several years, at which point the doom-sayers can start all over again.

I could easily be wrong, of course, but this is my best guess!
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#40
(04-11-2015, 08:50 AM)Dividend Watcher Wrote: I can't speak to outlets outside the U.S. but that's what I've noticed on the home front.

Like clockwork, this and this show up. Given, the French lifestyle is a wee bit different from the U.S. but I'd like to see something like this here.
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Their coffee still sucks, though.
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How do they get the deer to cross at that yellow road sign?

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