We've had comments here plus E-mails about a rumor (repeat - rumor) concerning the
threat that MCOPCO might follow Wall-Mart's lead and very publicly raise wages in the
U.S. stores. The idea being to put pressure on McDonald's Operators causing a round of
price increases which would end up raising income to McDonald's Corp.
There are arguments for and against this rumored move:
Against - MCOPCO margins have been declining for several years, raising wages would
make matters worse.
Against - Oak Brook needs to protect Operator cash flow in order to continue re-imaging,
new technologies, and the build-a-burger project.
For - McDonald's shareholders have benefited from the inflation created by increases in
the minimum wage for decades.
For - With new leadership heavily influenced by a European social agenda (quasi-socialist)
management might be eager to impress the world with more benefits for “workers”.
One thing is for sure – $1.00 menu items would have to go – if core menu prices go any
higher the Dollar Menu & More will be the only thing being sold at a McDonald's.