Monday, June 8, 2015

The Promised Change Is Finally Here

June 8, 2015
McDonald's Sales Top Estimates After Europe Outperforms U.S.

Global same-store sales fell 0.3 percent in the period, the Oak Brook, Illinois-based company said in a statement Monday.

What can we attribute to this improvement?

Easterbrook, who took over the CEO job in March, has vowed to transform the world’s largest restaurant chain into a “modern, progressive burger company.” He announced a turnaround plan last month that includes reorganizing management, cutting costs and returning cash to shareholders.

Nothing drives same store sales higher than happy customers. And what customer can't love management reorganizations, cost cutting, and returning cash to shareholders? Oh, sure. Some might prefer higher quality food and lower prices, but let's get real here. That would not be a modern and progressive way to do things. Most happy customers realize this.

This reminds me of a joke that my dad picked up in World War 2. I'll paraphrase from memory.

Men, you've been fighting in the jungle. It has not been easy going. Morale is low. You know it. I know it. I have good news though. You were promised a change of underwear months ago. I am pleased to announce that day is finally here. Tom, you swap with Jeff. Frank, you swap with Ted. Glen, you swap with Brad....

Behold the power of reorganization! ;)


Rob Dawg said...

Shareholder value good.
Customer value bad.

Works for a couple quarters.

Stagflationary Mark said...

Rob Dawg,

Need it to work for four quarters so that it can be placed on the shareholder dollar menu.

Badum-ching. ;)