• HEDGEYE’S MARKET BRIEF
    Our FREE Investing Newsletter
    Get Exclusive Summer Sale Discounts

    By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. All Hedgeye products and services are subject to Hedgeye’s Terms of Service available at www.hedgeye.com/terms_of_service

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.