MCD – THE COFFEE OPPORTUNITY AND ISSUES

The following comments are from a well respected MCD observer:

The original (internal) objective was to have enough stores on specialty coffee to go on National television in April of 2009. The national fund (OPNAD) had it on the 2009 calendar until recently. Problem is that no one thinks it would be smart to launch in the summer, especially since they had reasonable success this summer with a national iced coffee program so they'll want to do a repeat next summer and launch McCafe in the Fall/Winter of 2009/2010.

Reasons for the delay are many:

* franchisee foot dragging

* Unrealistic construction schedules

* Instead of using proven local contractors experienced in remodeling MCD stores MCD Corp. hired Bovis Lend Lease to coordinate the remodeling of all USA stores from Australia.

The real issue here is that the products have not proven themselves and many are still in the development stage yet a huge chuck of MCD advertising will eventually be diverted to McCafe. And if it
doesn't work well management will insist on diverting even more advertising $$$$$ to the program.

The MCD franchisees are concerned about the impact on overall sales, development and the introduction of other new products.


Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more