Nomura analyst Mark Kalinowski surveyed 29 U.S. franchisees which includes about 226 restaurants.
Workers responded by saying that they are frustrated with the new menu and added that it is "causing chaos" in the kitchen. It's also slowing down service, they noted.
"In small stores, the problems are vast with people falling over each other and equipment jammed in everywhere," one franchisee stated.
This comes one day after McDonald's U.S. President Mike Andres sent out a letter to chain stores saying, "The successful launch of All Day Breakfast proves that when we listen to and respond to our customers and align around a great execution plan, we will grow our business and take share," according to Fortune.
Over a week ago, McDonald's officially rolled out its all-day breakfast menu nationally, which includes food items like breakfast sandwiches, sausage burritos and hash browns.
Battling with sluggish sales amid fierce competition, McDonald's has been looking for a turnaround.
Separately, TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate MCDONALD'S CORP (MCD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, MCDONALD'S CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $1,513.50 million or 1.78% when compared to the same quarter last year. In addition, MCDONALD'S CORP has also modestly surpassed the industry average cash flow growth rate of -4.80%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 44.36% is the gross profit margin for MCDONALD'S CORP which we consider to be strong. Regardless of MCD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCD's net profit margin of 18.50% compares favorably to the industry average.
- MCD, with its decline in revenue, slightly underperformed the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 9.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: MCD