MCD Nonconfidence Vote
MCD is a LONG
No-confidence votes are infrequent events. Only one instance we know of was the 2018 vote of no confidence in management by Jack in the Box franchisees. The CEO at the time, Lenny Comma, initially survived the vote but was replaced two years later.
The National Black McDonald's Operators Association (NBMOA) last week took a vote of no confidence survey on CEO Chris Kempczinski and, according to Restaurant Businesss, approved the vote. Will the McDonald's Women Operators Network and the National Owners Association (NOA) take similar votes? The recent vote comes over new rules on the renewal of franchise agreements and the transfer of stores to franchisees' spouses or children. Many franchisees, who have long operated under the assumption that they would automatically renew if they met the company's standards for growth, now must go through a more rigorous process to remain in the system. The new standards come on top of several other changes McDonald's has made in its relationship with franchisees, including the more aggressive use of store purchase rights, a subsequent increase in those stores' rents, and surprise inspections of stores. All these changes are viewed as an effort to clean the system of rogue franchisees. But McDonald's has had a complex relationship with its franchisees dating back to at least 2017 when the current CEO was President of MCD USA and demanded remodels of operators known as "Experience of the Future," which helped form the NOA. The NBMOA's vote, however, specifically mentions the company's announcement to U.S. operators earlier this month that it would toughen rules on franchise renewals and no longer use the term 'rewrite' new franchise term is "earned, not given."
No Buyers for GRUB?
Not a big surprise that TKWY can sell GRUB in this environment.
Grubhub Chief Executive Adam DeWitt said company parent Just Eat Takeaway.com hopes to find a strategic partner to invest in the U.S. online ordering company. Mr. DeWitt said "no sale was imminent and that Just Eat was exploring options to strengthen Grubhub. It's more about finding a way to help us grow than it is necessarily about the sale."
Mr. DeWitt spoke at The Wall Street Journal's Global Food Forum.
Domino's Pizza Group (DOM-GB)
Domino's Pizza Group continues to expect FY22 underlying EBITDA and EPS to be in line with current market expectations.
Domino's Pizza Group (DOM-GB) announced that Dominic Paul, CEO, has informed the board of his decision to leave the company to take up Whitbread PLC's CEO role. He will work his six months contractual notice and leave in December 2022. The board is now initiating a process to identify his successor and will provide an update in due course.
