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.
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February 26, 2015
Wednesday - MCD - One of its Biggest Rallies in 5 Years
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| Chart from CNBC |
McDonald's shares are up 11% since the change in CEOs was announced. Next week we'll
learn of another round of sales by McDonald's insiders on Weds. and Thurs. of this week.
McDonald's jumps in one of its biggest rallies in past five years - Yahoo Finance
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