June 29, 2016

$15 Min Wage: Biggest Risk to Every Restaurant Company

Every publicly traded restaurant company is going to be hammered by the minimum wage hikes that were approved in New York City and California
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1 comment:

Anonymous said...

What a poorly written article as the writer lumps all "publicly traded restaurant companies" into one group some will do better than others. Obviously ones that are majority non-franchised will take a bigger hit, fully franchised companies could do better with increased royalties even with transaction decreases due to pricing increases. The presumption restaurant chains such as Shake Shake will do better because they can take price increases and recommends a company that it's P/E is 108.32 as stock to hold or purchase on the restaurant space is just a crazy gamble.

Writer also goes on to compare supermarkets they will too need to raise prices in most places where minimum wages are raised. (Other than NY's dumb fast food wage). The thing that is never written about how the cost of good and services will go up and a certain amount of inflation will certainly take place and what affect this will happen on fixed income people.