Today we are watching…
1. McDonald’s (#macd)
McDonald’s new CEO, Chris Kempczinski, is rocking the boat in his new role! Given the company’s market underperformance in 2019, he wants to change the way things are done con brio at the fast-food franchise. That means a change of corporate culture. He sees no time for a partying between senior officials and rank-and-file employees anymore. There’s business to attend to, and with McDonald’s still starved for growth opportunities, Kempczinski is keen to accelerate an injection of plant-based quality into the menu. The company promises investors stable but single-digit growth into the new decade. Can the new CEO improve on that?
2. Starbucks (#sbux)
Starbucks is ahead of the curve, flooding 1,300 locations with nondairy oat milk as traditional cow’s milk falls out of favor with the health-conscious. Consumer tastes are shifting. Last year, Dean Foods’s bankruptcy scare alerted investors to a harsh reality; it’s just not cool to drink cow’s milk anymore. In 1984, it represented 15% of all eating occasions. Today, the moo juice is substantially more expensive and features in only 9% of eating occasions. Befitting its nondairy theme, Starbucks is also taking a chance on two new drinks, the Honey Flat White and the Coconutmilk Latte! With a drip of sweet, frothy oat or almond milk, baristas think these drinks could be category killers in the years to come!