Competitor News

In contrast to the more upbeat Dunkin presentation, the Starbucks CFO. Pat Grismer, also appeared before the JP Morgan Consumer Conference. He noted their US same-store sales improved from minus 19% in June to minus 11% in August. They did not expect to get back to even in the US until sometime in early 2021.…

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When It Rains, It Pours

A few weeks ago, we reported on McDonalds suing to recover severance and bonus payments paid to terminated CEO Steve Easterbrook. On the heels of that evolving storm, executives at McDonalds now have an additional matter to deal with – a federal civil rights lawsuit brought by 52 black former franchisees. In the suit, filed…

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McDonald’s Sues Former CEO Easterbrook

McDonald’s announced Monday that it would sue to recover the severance and stock options that it granted to terminated CEO Steve Easterbrook in 2019.  At that time it concluded that he exercised bad judgement only in a relationship with an employee. Evidence later was uncovered that proved he lied and destroyed evidence of more sexual…

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Competitor News

Both McDonald’s and Starbucks hosted earnings calls as well this week and neither event was particularly pretty. In Q2, McDonald’s posted its lowest overall profit in 14 years, and US same-store stores declined 8.7% for the quarter as a whole. Preliminary July same-store sales trends were just barely in positive territory with breakfast daypart sales…

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Competitor News

Over the past few weeks, there have been a number of announcements of one sort or another about some competitor companies that we thought we’d be sure you were aware of. First off, on the politically correct front, Starbucks announced that the company “stood against hate speech” and was therefore pausing all advertising on social…

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Focus on Human Resources: Pandemic challenges the efforts to support employees and nourish the business

The restaurant industry – and particularly the Quick Service Restaurant (QSR) industry – is facing many challenges, among them finding and retaining good, reliable employees. It’s no secret that restaurants have an extremely high turnover rate with employees flowing through the revolving door. Data compiled before the coronavirus pandemic, showed employee turnover ran as high…

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Competitor News

Both McDonalds and Starbucks made news this week via investor presentations and SEC 8K filings. McDonald’s reported that US same store sales improved in May to minus 5%, up from minus 19% in April. That improvement was totally driven by higher average ticket, due to larger order sizes. Later, in an investor presentation, the company…

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Targeting the Golden Arches Over Time

A class action lawsuit was filed this week in Chicago against McDonalds alleging the company hasn’t acted sufficiently to protect its employees in the face of the coronavirus pandemic. If you take the longer view, you can see the allies lining up and checking the requisite boxes over the past few months to initiate such…

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McDonald’s Earnings

McDonald’s also presented Q1 earnings yesterday with a similar pattern – positive January and February US sales followed by a dramatic fall-off beginning in mid-March. The US same store sales bottomed out at -35% and improved to -25% in mid-April.  Virtually all US units are open, and the drive thru sales mix rose from 67%…

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Competitor News

Earlier this month, Starbucks reported that its US comp sales late in the month of March were down between 60 – 70% while only 44% of their US locations were still operating. Notwithstanding, the company announced that it was seeding the creation of the Global Partner Emergency Relief Program with $10 million to help workers…

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