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Wholesale transfer pricing:

"McDonald’s is considering deferring rent and service fees for its franchisees" reuters.com/article/us-hea…

Because it operates some restaurants itself, MCD knows how to "solve for" franchisee profitability by adjusting wholesale transfer pricing.
"Subway sent a “force majeure” letter to landlords earlier this week saying that it may cut off rent payments if franchisees have to curtail business as government entities order them to shut down or significantly pull back services." therealdeal.com/2020/03/20/ret…
Did you know Edwin Traisman, a food researcher who helped Kraft create Cheez Whiz, was an early McDonald's franchise owner in Wisconsin? Now you do know. nytimes.com/2007/06/09/us/… He also made a "significant contribution to McDonald’s fries" and research on E. coli bacteria.
25iQuiz:

Does this help McDonald's have wholesale transfer pricing power with its suppliers?

"most of McDonald’s raw material input is generic. So, it’s easy to source them from some other suppliers, in the event any of its suppliers faces any issues" google.com/amp/s/marketre…
25iQuiz: Is this an example of a wholesale transfer price?

"While food and packaging costs 45 cents for a double cheese burger, franchisees pay for rent, labor and utilities. In total, a promotional price of just $1 leaves store operators with 6 cents." wsj.com/articles/SB124…
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Tren Griffin
@trengriffin
1/ Not reading Howard Marks at a time like this is bonkers.

"We have to consider the outlook and the appropriateness of value, in the context of unprecedented uncertainty and the total absence of guidance from analogies to the past." oaktreecapital.com/insights/howar…
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Tren Griffin
@trengriffin
"During 2020, Karoui expects the 12-month trailing default rate to increase to 13%. Over the next six months, he forecasts about $555B worth of bonds will likely be cut to high-yield from investment-grade, in addition to the $149B downgraded year-to-date." bloomberg.com/news/articles/…
2/ People love junk bonds because for some weird reason they feel [junk bonds] don’t have interest rate risk.”
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3/ "I want fear. I want to buy things when people are afraid of it, not when they think it’s a gift being handed down to them.”
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Tren Griffin
@trengriffin
washingtonpost.com/opinions/bill-…
Perhaps you have heard of a "Billg review." It is about as intense a review as is possible and then some. If you aren't fully prepared and on your game you are on the menu and will be eaten alive. He works hard and is as rational and as smart as anyone I have ever encountered.
Anyone in a Billg review will quickly understands that he has read everthing, is fully prepared and will focus like a laser on the most important issues. He has been out front on the dangers of Pandemics for years. Listen to what Bill is saying is what I am saying.
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Daniel Sinclair
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Saint Patrick's Day celebrations winding down next. A year without culture or celebration.
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Cate Cadell
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I'm back looking at #coronavirus numbers today and a few things really stick out
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