Rodent Regatta

How many times have you invested in a business that explained each year’s one-time charge (read expense) as a non-recurring item. Yet, next year, you find some other non-recurring, one-time charge that removes a lot of the earnings the business had been claiming along the way.

McDonald’s has announced its first loss since becoming a public company 37 years ago. Restructuring charges were listed as a cause for the loss. What exactly is a restructuring charge? Did the execs not have the business structured properly to begin with?

It’s time for a return to absolute clarity on the part of execs and boards. If you did it wrong, admit it. If you’re battling a tough problem, say so. If the business surprised you, there’s no shame in mentioning that. Just be prepared to explain exactly what you’re doing now to fix the problems.