The First Casualty Of An "Improving" Economy: The Fast Food Dollar Menu, As McDonalds Considers Hiking Prices

Tyler Durden's picture

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tmosley's picture

Is this the "first" casualty?  Really, we haven't had any casualties before this?

Damn, I might just jump on the Happy Train with Harry, Robo, and associated fuckfaces!

Sorry, just tired of all these "So it begins" type posts.  It's already started.  We are transitioning from the end of the beginning to the middle of this crisis.  The transition will be complete when the Euro crisis hits the core with defaults.

Internet Tough Guy's picture

Agree. Oil at a 2 year high and dollar menu inflation are signs of the same event.

Cheesy Bastard's picture

1/8th pounder with cheese, anyone?

DaveyJones's picture

as long as the taste doesn't improve

duo's picture

What are the price increases for the 5 basic food groups?

Salt

MSG

high-fructose corn syrup

textured vegetable protein

partially hydrogenated vegetable oil (can be one of the following: palm, soybean, canola, sunflower)

hedgeless_horseman's picture

Worried about the price or availability of basics and have a woman in your life?  Buy her 2 dozen of these:

http://www.naturallycozy.com/washable-feminine-napkins.html

duo's picture

good luck getting through airport security with one of those.

Armchair Bear's picture

thanks! my 10 year old daughter's future career...making saddles for riding the cotton pony...i'll be stocking up on flannel and terrycloth!

Salinger's picture

you neglected to mention the newly approved additive to french fried potatoes that does not need to be declared

 

yes everyone's favorite Cancer Drug "Elspar" (or Asparaginase ) will now be added to products such as baked goods and french fries, ostensibly to ward off an heretofore unknown carcinogen, "Acrylamide. (actually Acrylamide has been suspected as a carcinogen for decades)

 

http://www.calgaryherald.com/story_print.html?id=2368480&sponsor=

 

(since that article was first published the additive has been approved)

CPL's picture

LOL, had to reread that ...

theXman's picture

Just came back from a Malaysian restaurant. Lots of price hikes on the menu over last week. The new prices are all hand-written -- the owner would not wait for the new menus to be printed or could afford it.

Red Neck Repugnicant's picture

Oil at a 2 year high and dollar menu inflation are signs of the same event.

@internet tough guy

Obviously (and shamefully) you have no knowledge of categorical propositions or syllogisms, and you certainly have never read Prior Analytics by Aristotle or An Enquiry concerning Human Understanding, by David Hume

Embarrassing!  

To suggest that there is a correlation (signs of the same event) between oil prices and business decisions by Ronald McDonald demonstrates a level of ignorance that is typically reserved for tmosely's posts. 

Before you post such knee buckling nonsense, it is advisable that you familiarize yourself with inductive vs. deductive reasoning.    

To start, find the flaw in this inductive example:

1. I believe most/all increases in commodity prices are the result of inflation. 

2. The price of oil has risen

3. Obviously, the rise in the price of oil is caused by inflation. 

 

Cheesy Bastard's picture

Yes, that is a logical fallacy, ie the rooster crows then the sun comes up.  The rooster crowing must cause the sun to come up.  Having said that are you suggesting that shipping and feed costs play no role in product pricing at Mcdonalds or elsewhere?

Red Neck Repugnicant's picture

are you suggesting that shipping and feed costs play no role in product pricing at Mcdonalds or elsewhere?

No. I never said nor suggested that. 


Cheesy Bastard's picture

To suggest that there is a correlation (signs of the same event) between oil prices and business decisions by Ronald McDonald demonstrates a level of ignorance

Sorry.  I thought I saw it right there.

Red Neck Repugnicant's picture

lol.  Nice.  

In general, yes - the price of oil affects all businesses.  That's obvious and well-known. 

Specifically to the point of this discussion though, the recent price of oil and the future of the McDollar menu are NOT correlated, nor are they "signs of the same event."

Even the quote by the executive at McDonald's has nothing to do with inflation or rising cost concerns.  It specifically mentions the prospects of an improving economy.  

 

 

tmosley's picture

I love how you acknowledge that he is right and then claim he is wrong in the same breath.  Doubleplusgood doublethink!

Red Neck Repugnicant's picture

Hey tGilligan

What happened to the McDollar menu when oil crossed $100 and went to $147?

Nothing. 

 

Al Gorerhythm's picture

Fekete,

Rothbard,

Menger,

von Mises,

Hayek.

akak's picture

What happened to the McDollar menu when oil crossed $100 and went to $147?

I wish I could tell you, but since I am not a McSlob and actually care about my health, and have a weird, atavistic habit of consuming real food, I refuse to patronize the McEmpire and eat McShit.

Eally Ucked's picture

Just ask McD for changes in recipe over time span of 20 years, maybe you'll find your answers.

Armchair Bear's picture

double cheeseburger went to $1.19 in my town

tmosley's picture

I see you skipped the first part of the old saying, and skipped straight to the "baffle them with bullshit" stage.

Why do you bother posting here among us neanderthals?  Why don't you go someplace enlightened, like the Obama forums, or Yahoo finance boards?  They seem more your speed.

Sancho Ponzi's picture

I worked closely with the logistics folks at a food manufacturing company. When fuel prices rose they were forced to stop serving smaller customers which led to route consolidation, layoffs, etc.

Anyone with experience in the food manufacting/food service industry knows how critical fuel prices are to their bottom line. You know that 'reefer' on the front of the trailer that keeps the food refrigerated? Yep, that runs on diesel. Did you know each route can service 20-40 customers a day, and that fuel is one of the highest variable costs to deliver product? Did you know that all of the pickles you eat on your McBurger come from the same source, and had to be transported across the country? 

Red Neck Repugnicant's picture

Anyone with experience in the food manufacting/food service industry knows how critical fuel prices are to their bottom line.

No one is debating that, and we certainly don't care where the pickles come from.  

Everyone wants to suggest that inflation (and specifically, Bernanke) is to blame for the rise in anything/everything. If oil goes up, then obviously it's Bernanke's fault, not demand pulls from China.  Right?  Or if McDonald's wants to adjust their McDollar menu, then it must be cost-inflation creeping into the economy.  Right?

Wrong.  

akak's picture

But why are you going to such lengths to seemingly deny the obvious: that the dollar IS depreciating, and that this IS at least contributing to food price increases, even if the ongoing and never-ending depreciation of our faith-based fiat currency may not be responsible for ALL such increases at all times?

EscapeKey's picture

Why is AmericanPatriot posting his lies on Marketwatch?

tmosley's picture

I see.  The Chinese are consuming more in the face of massive inflation and stagnant wages.

How can a human being be as stupid as you, yet still manage to operate a computer?   That's right, you're not actually stupid, you just base your worldview 100% on being the opposite of what people you don't like think.  That just makes you LOOK like an utter moron.  Of course, it certainly means you don't think for yourself, and instead let your enemies determine what you should think.

Well, how about this?  I think you should definitely stick around, and you should definitely not castrate yourself, so you can be certain to spread your defective genes to the four winds.

Red Neck Repugnicant's picture

The Chinese are consuming more in the face of massive inflation and stagnant wages

So...you're being sarcastic? 

For the sake clarity, do you think Chinese demand for oil is affecting oil prices, especially in the past 12 months? 

Al Gorerhythm's picture

Do you think that China's release of $ reserves into the commodity markets is affecting oil (and every other good) prices?

 

Rahm's picture

You are BY FAR the DUMBEST person on this website.

akak's picture

Actually, he probably is not --- but may very well be one of the most disingenuous and antagonistic members of this forum.

Rahm's picture

Fair enough.  Second DUMBEST on this site ;)

tmosley's picture

Screw the Chinese, how about the whole world?  Oil use was down 2% between 2008 and 2009, the latest time frame for which data is available (http://www.enerdata.net/enerdatauk/publications/world-energy-statistics-...).  With everything everywhere continuing to look like shit, there is no reason to think it will do anything else will happen this year.

Red Neck Repugnicant's picture

You didn't answer the question, and I suspect it is due to you - once again - having absolutely no idea what you're talking about.  

Secondly, WTF does this mean:

there is no reason to think it will do anything else will happen this year.



tmosley's picture

China's use of oil and energy in general is going up, but the world price is dictated by world supply and world demand.  World demand is down.

That means the decline in energy use that started last year will continue this year.

You sure do seem to have a lot of trouble understanding what people are saying.

EscapeKey's picture

All BRIC countries experience rapid rise in terms of oil use. I wouldn't automatically assume use is down worldwide.

Sean7k's picture

Red,

The chinese are consuming more because their currency is buying less and as they see inflation rising- it behooves them to spend it now. 

So, nothing to do tonight? Thought you'd see if you could rile people up? 

Monday1929's picture

You mean it all comes from one, big, pickle? :)

Al Gorerhythm's picture

Your intellectual capacity based on your insights is breathtaking. 

duo's picture

What are the price increases for the 5 basic food groups?

Salt

MSG

high-fructose corn syrup

textured vegetable protein

partially hydrogenated vegetable oil (can be one of the following: palm, soybean, canola, sunflower)

Kaiser Sousa's picture

dont fret...its the Star Wars approach to chronicling a unfolding catastrophe...

MonsterZero's picture

When I was growing up they had $1 double cheeseburgers instead of the $1 MCdoubles today that only have one slice of cheese... oh the good ole days...