The bad news just keeps on coming for McDonald’s as their quarterly franchisee survey was released last week and it pegged franchise owner confidence at the lowest level since the survey began 12 years ago. Surveyed owners reported same store sales in June were down 2.3 percent and projected a decline in July of an additional 1.2 percent in SSS. Further, operators pegged their outlook at 1.69 on a scale of 1 – 5 (worst ever) and rated their relationship with corporate at a dismal 1.45, down from 1.48 in the last quarter. In other news, Krispy Kreme announced they are returning to the Baltimore market after a 6 year hiatus with the signing of a lease for one store in Anne Arundel County. The company claims to be in talks for additional stores in that market. And lastly, our DDIFO Restaurant Analyst, John Gordon of Pacific Management Consulting Group reports that yesterday Starbucks reported world-wide comparable sales of +7% and 4% traffic. North America comps were +8%, with half traffic and half ticket. Of the ticket, a small amount was price (maybe 1%) with the bulk product mix, esp. food attachment. They didn’t report store margins yet, but the last full year EBITDA margin was 29%.