CMG Replay
CMG has been on an incredible run since Brian Niccol took over. The company put up an exceptional year in 2021, seeing both food and labor costs down despite significant inflation. Some of those trends will reverse in 2022, but the street expects more of the same.
CLICK HERE for event details (includes video and materials link).
SBUX shareholder letter
One day before it was made public that CEO Kevin Johnson was retiring, a blistering shareholder letter was sent to Mellody Hobson, Independent Chair of the Board of Directors, and Kevin Johnson. The letter outlines how these shareholders believe the company should respond to its growing labor unions. This must be a challenging issue for interim CEO Howard Schultz, who built the company built the company with the culture to provide employees with "a welcoming and uplifting third place" as well as generous policies such as healthcare benefits for part-time employees, an inclusive workplace, free college tuition, and paid parental leave. With nearly 350,000 employees, ironically called partners, the company has the daunting challenge of adjusting to a world post covid and now labor unions. The labor union genie is out of the bottle and not going back in; how the company adjusts is the central theme for this stock.
"We, the undersigned investors, representing over $3.4 trillion in assets under management or advisement, are writing to highlight the value of worker representation to company productivity and the fundamental right of workers to freely associate and collectively bargain. To date, at least 120 Starbucks stores across the U.S. are pursuing union elections. As more Starbucks partners make the decision of whether they should unionize, we believe the company should publicly commit to a global policy of neutrality and swiftly reach fair and timely collective bargains with the workers should they vote to unionize."
Any outcome for the company is likely to get very expensive.
MCD DRIVES DIGITAL GROWTH
McDonald's & Just Eat Takeaway.com have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonald's customers and franchisees with the convenience and value of McDelivery in markets across the world.
- Support growth of the McDelivery business
- Lead to increased operational benefits for Just Eat (what concessions did they give MCD to get this deal?)
This partnership will elevate existing local partnerships between Just Eat Takeaway.com and Mcdonald's, reducing complexity and providing a great opportunity to innovate at scale together on operational efficiency and a seamless customer experience. Delivery is a significant component of McDonald's accelerating digital business.
