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Greetings!
Welcome to the first issue of Whalen Company's
E-Newsletter for owner/operators of McDonald's restaurants. You are receiving this newsletter because you are a client of our firm. We're also inviting other owner/operators in Ohio and Pennsylvania to become newsletter subscribers as well as McDonald's corporate staff members, and bankers and other businesspersons serving McDonald's franchise owners.
The newsletters will be sent quarterly. Topics will relate to accounting and reporting, tax savings strategies and planning, restaurant valuations and retirement and succession planning. There will also be information about our clients, Ronald McDonald House Charities, the McDonald's history and culture, and our staff.
We hope you will want to be included among our readers, but if you do not wish to receive future issues, there is an easy way to opt out at the end of this newsletter. |
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Reinvestment Planning Tool
Introduced to Owner/Operators
McDonald's corporate staff made a Five-Year Reinvestment Planning Tool available to owner/operators last fall. This web-based software program is an extremely valuable tool that can assist you with planning for reinvestment, rebuilds, or store acquisitions. After you have inputted your company's data, the tool will analyze the reinvestment you are making in the business to determine the cash-flow impact.
Multiple scenarios can be run and the Five- Year Reinvestment Planning Tool will also show the future impact on your financial ratios, such as the cash-flow coverage ratio and the liability turnover ratio. The tool will also create reports showing the "before" and "after" effect of the reinvestment. This tool also is linked to the Profit Generator Tool.
Some items to consider before you begin using the Five-Year Reinvestment Planning Tool are projected sales increases, PAC, a list of required reinvestment costs and the timing of the reinvestment. You should also consider the interest rates and loan terms if you plan to borrow the money to pay for the reinvestment.
If you need assistance using this new planning tool, contact us. We will be glad to help.
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Food Donation May Qualify for
Enhanced Charitable Deduct ion
Restaurants that donate food inventory to a qualified charity can benefit from an enhanced charitable deduction. By taking the enhanced charitable deduction, you may deduct the cost of the food plus an additional amount for either half of the inventory's appreciation or twice the basis of the inventory, whichever is less.
The donation is intended for the human consumption of wholesome food. The charitable organization must use the donation for the care of the ill, the needy or infants.
Recent tax legislation has extended the enhanced charitable deduction until December 31, 2011. |
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Employers Can Still Benefit
from the HIRE Act
 While the HIRE Act (Hiring Incentives to Restore Employment) was signed into law a year ago, McDonald's owner/operators can still take advantage of some of the law's provisions providing tax incentives to businesses to hire unemployed workers.
Although the provision exempting employers from their share of social security tax (6.2 percent) for qualified employees expired on December 31, 2010, a business tax credit of up to $1,000 for worker retention still appllies. Below are the key points to consider:
- Amended 941 forms can be filed to take advantage of the credit.
- Eligible employees must sign form W-11 for the employer to qualify.
- Eligible employees are those employees that did not work more than 40 hours in the previous 60 days before being hired.
- Employers will receive up to $1,000 of income tax credits when 2011 tax returns are filed for any eligible employees that were hired in 2010 and work for one year or more for the employer. An employee who has a hire date prior to January 1, 2011, but received no wage payments in 2010 is still an eligible worker for the retention credit, subject to the retained worker eligibility rules. The employer must retain the worker for 52 weeks from the date of hire. In addition, wages earned in the second 26 weeks of employment must be 80 percent or more than wages earned in the first 26 weeks of employment.
- HIRE Credit should be looked at along with the Work Opportunity Tax Credit for optimization.
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Client Profile
Brian Mortellaro Continues
to Grow the Family's Business
Whalen is proud to be working with a number of second-generation franchise owner/operators, and Brian Mortellaro is one of them. He has been a client of Whalen & Company since 2008.
Brian's route to becoming a McDonald's owner/operator was a circuitous one. Although his father, Joe, owned and operated a number of McDonald's restaurants in the Newark/ Mount Vernon area when Brian was growing up, following in his father's footsteps didn't initially appeal to him.
Click here to learn more about Brian's road to becoming a McDonald's owner/operator.
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McDonald's Milkshakes Are a Big Hit!
During the tax season the firm holds special treat days for staff on alternating Fridays and often these activities celebrate the relationship Whalen has with its clients. On March 9, we celebrated the founding of 
McDonald's in 1955 with a Fifties-themed treat - milkshakes from McDonald's. Staff could opt to wear jeans, which became popular with teens in the 50s, and Whalen logo shirts or sweaters.
Most popular shake flavor? The mint-flavored Shamrock shake. Staff members also made a $55 donation to the RMHC of Central Ohio. Pictured with their shakes, from left, are Donna Steiner, office manager, Bruce Berry and Linda Nay, firm administrator and associate director.
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Whalen & Company, CPAs has been assisting McDonald's owner/operators for more than 20 years, and we're lovin' it today. Over those years we have built relationships with owner/operators based on our understanding of their business, our service and mutual respect and trust. We provide our clients with monthly accounting and reporting, bill paying, payroll services, tax planning and filing preparation and specialized services, including restaurant valuations and succession planning. |
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McDONALD'S MOMENTS |
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Today, April 15 may be an ominous date for many people. But for Ray Kroc, April 15, 1955, was a momentous day. It was on that day that Kroc opened his first McDonald's restaurant in Des Plaines, Illinois. Hamburgers cost 15 cents, and cheeseburgers were 19 cents. Milk shakes cost 20 cents; French fries and sodas cost 10 cents each.
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STAFF PROFILE |
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Bruce Berry, CPA
 Bruce Berry is one of 10 members of Whalen & Company who serve McDonald's franchise owners. He is a director of the firm and oversees the accounting department.
While Bruce has never flipped a hamburger, he has helped some franchise owners turn around their businesses by increasing their understanding of financial statements and minimizing their income tax liabilities.
Click here to learn how Bruce works with McDonald's owner/operators
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FOOD FOR THOUGHT |
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"Pick individuals who have the skills, talents, and leadership to run independently. Allow these individuals the responsibility and authority to make decisions." |
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WHALEN & COMPANY TEAM McDONALD'S |
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Lisa Shuneson, CPA, PFS, Partner
Richard Crabtree, CPA, PFS, Partner
Laura Wojciechowski, CPA, EA, PFS, Partner
Bruce Berry, CPA, Director
Steve Wenzlick, CPA, CVA, Staff Manager, Accounting Department
Kumar Patel, CPA, PFS, Senior Lead Accountant
Teri Curtin, CPA, Staff Accountant
Lisa Kuhn, Staff Accountant
Carolyn Harrison, Staff Accountant
Jeannette Reitmajer, Staff Accountant
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RMHC NEWS |
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RMHC Hosts a Toast to TinselTown
The Ronald McDonald House will hold its annual A Toast to TinselTown on Saturday, April 9, at Nationwide Arena. The event includes a cocktail party in the Founders Club Lounge, followed by the Jackets-Sabers game with seating in the Skybox Terrace and an after-game VIP party involving sponsors and Blue Jackets' players. For sponsorship details, click here.
RMHC has four additional events planned later in the year to raise funds for the organization and its important mission. A committee of franchise owner/operators along with the support of corporate staff and the staff from the RMHC provides leadership for the activities.
Partner Richard Crabtree serves on the sponsorship committee. His involvement last year included working on the successful McDonald's All-American Basketball Games, which were held in Columbus in March. Below, Richard lines up with a life-size promotional display of Cleveland Cavaliers' player LeBron James, who competed in the games in 2003 and was a "big" supporter of last year's event. |
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