Below is a note written by CEO Keith McCullough on why we're adding McDonald's (MCD) to the short side of Investing Ideas today:
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I've been waiting for the US stock market to have another big #cowbell or Trump #tweet bounce before laying out more of my Research Team's Best SELL Ideas. I'm getting that opportunity with the ECB ringing the central market planning cowbell this morning! McDonald's (MCD) has moved from a Best Idea Long over the years to a Short by Howard Penney. Here's a taste of why he's not lovin' it: "I (Howard Penney) have now listened to nearly 100 MCD earnings calls, spanning 7 CEO’s. I was a big fan of the changes Steve Easterbrook was making in the early days of his tenure as CEO. In the nearly 4 years he has been CEO there have been a significant amount of positive changes at the company. There have also been some changes that have sent the company down the wrong path, leading to significant disappointments. The most obvious disappointment was the hiring of Chris Kempczinski, the head of MCD USA. Chris’s inability to understand how important the franchisees are to the company has led to the formation of the National Owners Association. An organization the company has never needed in its 50 year history. Over the years there have been issues with the franchisees, but nothing like what we are seeing today. These are extraordinary times for the company, and it appears the current CEO is in denial of the realities of the business. Until changes are made at the top, MCD’s operating performance will continue to disappoint." Sell on green, KM |
