Franchisees Clash In Their Assessment Of McDonald’s Corporation (NYSE:MCD)’s All-Day Breakfast


McDonald’s Corporation (NYSE:MCD)’s All-Day Breakfast offering is a dividing factor. If you ask McDonald’s franchisees what they think about it, you are sure to get sharply different opinions. Nomura Holdings, Inc. (ADR) (NYSE:NMR) sought to assess how franchisees have received the All-Day Breakfast regime, and as it turns out, many of them aren’t happy.

McDonald’s Corporation (NYSE:MCD) recent menu updates are proving to be unpopular with many of its franchise partners. Although the All-Day Breakfast offering was, among other things, expected to jumpstart sales, franchisees sentiments around it are mixed. According to Nomura, at least 29 franchisees aren’t happy with the recent developments at McDonald’s. They are particularly worried about the future of the corporation and their own investments.

Arrogant management team

Some of the franchisees interviewed by Nomura expressed frustration with the way McDonald’s appears to be working hard to throw away good people. Even of greater concern for franchisees is the way the top management and the board of McDonald’s have become arrogant in recent times.

Complex menu structure

Concerning the All-Day Breakfast, the franchise partners that Nomura talked to said that the offering had complicated matters for them. For example, some franchisees explained how the All-Day Breakfast issue had added complexity in their kitchens. Others think that the All-Day Breakfast offering is misplaced because McDonald’s should have initially worked to simplify its already oversaturated menu.

For some franchisees, McDonald’s Corporation (NYSE:MCD) appears to put the interest of investors before that of its corporate partners.

When Nomura asked the franchisees that it interviewed to rate their business outlook in a scale of 1 to 5, where one signifies “poor” and 5 signifies “excellent”, the average came up at 1.96. That indicates how McDonald’s franchise partners have a gloomy outlook of their business.

Support for All-Day Breakfast

However, not everyone agrees that McDonald’s Corporation (NYSE:MCD) blundered with its All-Day Breakfast rollout. First, McDonald’s itself defends the breakfast offering, terming it a major success. According to McDonald’s, most of its 3,100 franchisees consider the All-Day Breakfast offering a hit. Several other franchisees have also commented in support of McDonald’s.

Nomura’s survey only captured a tiny fraction of McDonald’s Corporation (NYSE:MCD)’s franchisee population.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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