McDonald’s finds success with going back to basics

The Economist reports:

The seeds of the revival of McDonald’s started with a simple decision that is surprisingly easy to get wrong: go back to basics. From 2015 onwards, it pared back its array of menu offerings and focused on price and quality. It recommitted to Ray Kroc’s beloved business model, increasing the share of franchises last year to 93% (of almost 39,000 restaurants), up from 82% in 2015. That provided it with higher-margin and steadier royalty and rental income. It streamlined its sprawling international operations, selling control of its restaurants in China and Hong Kong. The results were impressive. Across McDonald’s sales exceeded $100bn last year; its operating margins, thinner than a frazzled patty in most of the restaurant industry, ballooned to 43%. And its share price sizzled. Since 2015 its market value has almost doubled to $160bn.

Full Story at Economist.com

Posted on Nov 17, 20

US Big Business Lobby Group Updates Mission of the Public Corporation

Fortune Text accompanying this: The Business Roundtable Issues Updated Statement on the Purpose of a Corporation.

The Economist takes a more critical stance.

Posted on Sep 07, 19

Curious First in the World: KLM airline wants its customers to fly less.

KLM wants its customers to fly less. What does this mean for what are KLM’s fundamental goals?

Posted on Jul 12, 19

WEBA (Weaving Company Appenzell), Switzerland

This is an information video how WEBA (Weaving Company Appenzell), Switzerland, is able to produce high cloth for shirt fashion designers.

Posted on Jan 30, 19

Former Southwest Airlines CEO’s Personal Fundamental Objective

“Anybody who seeks wealth as an end in itself is always going to be disappointed,” he said in 1995. “What you really should be doing is seeking excellence in achievement.”

Source: Washington Post Obituary

Posted on Jan 06, 19