When we drove across the country and back this past summer, we stopped at so many McDonald's off mostly the Interstates and popular highways, the restaurants were really busy, and we consistently were treated with really high quality food, particularly exceptionally delicious, Crisply Golden French Fries, Double Cheeseburgers, Coffee and Cokes.
Then we got home in a middle-sized city and in every stop there over a period of several months at several different McDonald's restaurants, the French Fries were the furthest thing from Crisply Golden.....in fact, they were most always white colored, soggy and way too greasy. Also, the Double Cheeseburgers were not nearly the same quality we found on our cross country trip. Thus we stopped eating there.
When your premier Signature product French Fries are white colored, soggy and excessively greasy, you have a serious problem with your quality. Founder Ray Kroc and his First Lieutenant Fred Turner would both quickly become aware of and also quickly fix this serious quality problem. It shouldn't be that hard to fix.
Also, I think McDonald's financial creativity is slipping.
When interest rates are so incredibly low, you should be more aggressive in your buy backs of your common stock.
Also, McDonald's would be a massive beneficiary if it were to set up a REIT in the US. It has huge appreciation in its vast US Real Estate holdings and setting up a US REIT will unlock this massively hidden value. Further, the US REIT would not be taxed on its profits, which should be huge if the REIT is set up properly.
And I have to wonder if some foreign countries have favorable income tax laws that are something similar to a US REIT.
I'm betting CEO Don Thompson will fix these problems. Just turning its white colored, soggy and much too greasy French Fries to Crisply Golden would quickly get me back. And I'm betting many others. When McDonald's was at its best, every restaurant in the McDonald's System had exceptional French Fries. Exceptional French Fries are the main draw that get customers in the door and in the drive thru lane.....once there, they'll try other menu items.
