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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Competitor News

McDonalds Corp announced last week that it had suspended its all-day breakfast menu until further notice.  The all-day McDonald’s breakfast menu launched nationwide back in October, 2015. Chipotle announced that it was giving 10% raises to its hourly workers through April 12, after which apparently those same workers will see a 10% reduction in their…

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Competitor News

Starbucks announced this week that it had reopened 95% of its stores in China including a number of them in Wuhan, Hubei Province – where the coronavirus originated. McDonalds Corp. this week announced that as of Monday, March 23, it had closed all 1,270 of its stores, drive-thru included, in the United Kingdom and Ireland.…

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Miscellaneous

We want to acknowledge and thank CFA Executive Director Misty Chally for the great job she did representing franchisee associations on the Stuart Varney Show on Fox Business television earlier this week. Misty was interviewed about the needs of the franchising industry in these chaotic times of COVID-19. Congrats, Misty and thank you!  We also…

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