There's a little bit of a slowing effect in February because of the weather, coming on the heels of a very strong January. Consumer confidence is moderating.
They are a ways away from hitting on all cylinders. There is a healthy core, but they are continuing to divest some of their slower growth areas.
Employment's good and they traffic in consumables, so you can't postpone that forever.
There was certainly shopper excitement early on, but it wasn't sustained. Clearly their Black Friday strategy worked. But their holiday was modestly disappointing as they went on.
There's reason for optimism. A lot is likely to happen in the next 12 months.
The gist of these proposals has been to extract some cash from the company. The more the better ... with these proposals in the view of shareholders.
Something along these lines will happen over the next 12 months, but it will be at the timing and discretion of McDonald's management team. No one likes to be dictated to.
They have marked time by working off the (buyout price) premium and some of the uncertainty.
The key is to keep them in the stores a little longer. Certainly they're in a turnaround situation. Now they need to move to month-in, month-out having stronger same- store sales and bringing that to the bottom line.
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