MCD - Embedded Expectations Analysis - 2019 03 04
McDonald's Corporation (MCD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 27.8x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about EOTF initiatives, franchise owner relationships, and global sales growthSpecifically, management may be concerned about their ability to reverse decreases in franchise margin, and manage the costs of EOTF upgrades. Moreover, they may be exaggerating the impact of interior change initiatives, and the importance of
drive-thru sales. Also, they may be downplaying concerns about frustrated franchise owners, and may be concerned about franchise flexibility. Furthermore, they may lack confidence in their ability to sustain global comparable sales, promotional sales, and EPS growth. Additionally, they may be concerned about their ability to improve user experience through their mobile app, and may be exaggerating the strength of their UberEATS partnership
McDonald's franchises and operates McDonald's restaurants. The company's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, fries, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages. The company's restaurants in the United States and various international markets provide a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes. The restaurants also sells a variety of other products during limited-time promotions
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