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0.000260078023407208 0.000278655025079121 0.000297232026751034 0.000891696080252681 0.00241501021735105 0.00494148244473357 0.00527586847482822 0.00527586847482822
Stock impact report

McDonald's Faces Fed-Up Franchisees Decrying ‘Destructive Path' [BNN Bloomberg (Canada)]

McDonald's Corporation (MCD) 
Last mcdonald's corporation earnings: 4/30 06:58 am Check Earnings Report
Company Research Source: BNN Bloomberg
Squeezed by higher costs and grumbling at new operating rules, franchisees are joining a meeting this month with the company's board to press their case in person. The session will give US operators “an opportunity to share with the board of directors why we believe we are on a destructive path,” one group of owners said in an emailed newsletter to about 1,000 members. The discontent represents a risk to McDonald's growth plans, said John Gordon, principal at Pacific Management Consulting Group, a restaurant and franchisee adviser. If this unrest leads longtime franchisees to “hang up the towel,” then it's an “inherent operating risk” for McDonald's because replacement franchisees may not be as well capitalized, he said. Newer franchisees would likely face higher borrowing costs, he added. McDonald's says that its longstanding relationships with lenders allows the company to connect franchisees with competitive financing options for growth. In an emailed statement, it acknowledge Show less Read more
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