If you watch the movie on Roy Kroc called The Founder or read the book about McDonald’s you will know when McDonald’s started it was very inexpensive food, served fast and offered good value. As restaurants were built, Mr. Kroc ensured, who spent his days as a travelling salesman ensured the restrooms were cleaned. It was said that if Mr. Kroc dropped by a store and the washrooms were dirty, the franchise owner could lose their franchise. This was particularly true for parents travelling with kids who stopped at McDonald’s partly for the food and also partly for the washrooms.

Over the years, Ronald McDonald became one of the most recognized characters for children and when they became adults brought their kids to McDonald’s. McDonald’s still offers value, but it is not inexpensive.

In an article from Reuters, McDonald’s rolled out an $8.5 billion franchisee support plan called NEXT. Chief Executive Chris Kempczinski said the winners will be the companies that create more demand and deliver it more efficiently.

NEXT will focus on improving food quality, hospitality, value and innovation.

In the meantime, customer traffic in key markets is flat as long as inflation is elevated. The warning reinforced investor concerns that McDonald’s turnaround could take longer than expected.

McDonald’s missed their estimates for 2nd quarter US sales growth citing execution missteps that hinder efforts to win back lower-income consumers who cut back on dining out.

Linking to dividend paying stocks, we all meet brands at various times, some when they are new, some when they are hot and some when they are old reliable. However, brands change over time, and it is important to analyze the brand that you are buying. Where is the brand now – what are the margins?

There are more questions than answers, till the next time – to raising questions.