Joseph Buckley, Banc of America/Merrill Lynch

McDonald's Corporation (MCD) - Joseph Buckley at Banc of America/Merrill Lynch

McDonald's, which has faced the sudden loss of leadership before, has a deep bench of experienced executives and leadership development practices, observers said, noting that the issue of succession planning is under increased scrutiny by the Securities and Exchange Commission."The surprising news that McDonald's chief operating officer, Ralph Alvarez, will retire at year end because of orthopedic health issues, including two recent knee replacements, is a negative development, but one that CEO Jim Skinner and a strong overall management team can handle," said Joseph Buckley, a securities analyst with Bank of America Merrill Lynch, in a research note.Buckley noted that Alvarez had been in obvious pain the last time the two spoke at an investor conference. He and several analysts had speculated that Alvarez would have been the successor to Skinner as chief executive one day.During executive shakeups like this, questions of succession planning could negatively affect a company's stock price, debt ratings or other factors of shareholder value, said Bruce Sherman, principal of Chicago based Integral Advisors LLC. 

Wendy's/Arby's Group Inc. (WEN) - Joseph Buckley at Banc of America/Merrill Lynch

The deal would allow the company to better "manage food and related product purchases and distribution services for the Wendy's system," Hare said. The ultimate goal, he said, would be to bring both brands together to "leverage the buying power of both Wendy's and Arby's on non brand specific products and services." The company plans to invest $15 million to launch the initiative, which later would be funded by its members. Joseph Buckley, a securities analyst at Bank of America Merrill Lynch, questioned the advantage of the strategy, wondering how franchisees responded to the plan.  

Investors Management Corporation - Joseph Buckley at Banc of America/Merrill Lynch

He estimated same store sales declines of about 100 basis points, or 1 percent, compared with the third quarter of last year. Investors and analysts are carefully watching for any signs of sales growth that will help drive an industry recovery. The restaurant sector is typically the first to feel the effects of an economic downswing and also the first to feel the effects of an upswing. So far, data has not pointed toward a top line recovery. "We do not expect many positive sales updates," said Joe Buckley, restaurant securities analyst at Bank of America Merrill Lynch in New York.