McDonald’s (NYSE:MCD) is about to release earnings. Consider this Bear Case Scenario was you munch on the corporate commentary about the latest numbers. Fries with that? global QSR competition is intense and cut-throat. Most consumers are indifferent to the various brand available. Food costs are commodity driven up down and around no one has control least of all shareholders. Some fear rising labour costs due to the politically correct minimum wage movement. Cheap labour will be replaced by robots soon. Cost of re-tooling will be a problem. Tight markets and small stores may make a lot of franchisee’s weak financially. What lose money at McDonald’s. Yeah baby it’s a business.
George Gutowski writes from a caveat emptor perspective.