MCD Stock – 3 Things Making McDonald’s Franchisees Unhappy

Owner-operators believe that the Dollar Menu is hurting sales

   

There was a lot of pessimism among McDonald’s (MCD) franchisees for their 2014 projections as MCD stock is down over 0.5%.

McDonalds185 MCD Stock   3 Things Making McDonald's Franchisees UnhappyThe Janney Capital Markets’ McDonald’s Franchisee Survey asks the company’s owner-operators to project sales for the next six months. Franchisees produced a record-low 1.89 average score on a 1 to 5 scale. Respondents had never given a lower average score of 2.9 before the most recent survey which ranks between ‘poor’ and ‘fair.’

These are the 3 main things that make McDonald’s franchisees unhappy.

  • The Cold Weather – Although the company has no control over the weather, the harsh January polar vortex has affected sales. “If January stays cold like this, or anything like this, we are going to be down substantially,” one operator told Janney.
  • The Brand’s Marketing Plan – Owner-operators are dissatisfied with the company’s lack of creativity in its marketing department. One franchisee said that there is “absolutely no creativity coming from the agencies and McDonald’s marketing team.”
  • The Dollar Menu & More – Franchisees are especially unhappy about the Dollar Menu & More which is hurting overall sales because people are not buying expensive sandwiches as often.

MCD stock is down 0.7% in early trading Monday.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/mcd-stock-mcdonalds/.

©2014 InvestorPlace Media, LLC

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