Here is what happens when mega-corporations such as WalMart and McDonalds, whose specialty are commoditized products and services and have razor thin margins, yet which try to give an appearance of doing the right thing, raise minimum wages. They start flexing their muscles, and in the process trample all over the companies that comprise their own cost overhead: their suppliers and vendors.Take the case of WalMart: the world's biggest retailer "is increasing the pressure on suppliers to cut the cost of their products, in an effort to regain the mantle of low-price leader and turn around its sluggish U.S. sales."
McDonalds Stock Slides After Fast-Food Chain Reports 9th Consecutive Month Of Declining Global SalesSubmitted by Tyler Durden on 03/09/2015 08:30 -0400
While the debate rages just what is causing the persistent weakness in McDonalds same store sales now stretching into its second year, there is no debate that whatever the reason may be, the once-iconic fast food chain is hurting. Because after staging a modest year end comeback and almost rising back to flat in December when it almost broke even, dropping "only" 0.1%, since then global sales have once again slowed down markedly, and have dropped by 1.8% and 1.7% in January and February respectively.
State Department spokesperson Marie Harf explains to no lesser pillar of unbiased reporting than Chris Matthews that - as opposed to President Obama's 'bomb them into oblivion' perspective, "we can't kill our way out of this war [with ISIS]... we must address the root causes - like joblessness." Even Matthews is stunned at this perspective, exclaiming "we're never going to chieve that in 50 lifetimes, there'll always be poor muslims." But, as the administration appears to be suggesting, even every radical muslim deserves $10.25 an hour to work at Baghdad McDonalds...
The world has begun to devolve into two distinct factions. The imperialist actions of the American Empire in the Middle East and Ukraine have pushed Russia, China, India, Brazil, and Iran closer together regarding trade deals; transacting commerce without using the USD; oil and gas pipelines; and military cooperation. Totalitarian regimes are known for using foreign threats to distract the populace from domestic suffering. As a matter of fact, all regimes use this tactic. When the global economy rips apart at the seams due to the debt saturation, world leaders will attempt to blame other countries for their dire circumstances. Foreign enemies are good for business. Ask our Nobel Peace Prize winning President. War is inevitable.
Presented with little comment aside to note that a robot burger-flipper would never react like this were he (or she) to be fired from their job at McDonalds...
McDonalds CEO Retires Following Horrible Year: New Boss Seen Here Wearing At Least 37 Pieces Of FlairSubmitted by Tyler Durden on 01/28/2015 18:52 -0400
The Board of Directors of McDonald's Corporation today announced that Don Thompson will retire as President and Chief Executive Officer and as a member of the Board of Directors after nearly 25 years of service to the company, effective March 1. The Board has elected Steve Easterbrook to replace Thompson as President and CEO. Easterbrook was also elected to the Board of Directors, filling the vacancy created by Thompson.
After a customer went berserk 2 days ago over 40 cents, it appears the McDonalds Riots are contagious...
Half a century ago, Clint Eastwood killed a whole lot of people for "a fistful of dollars." This Christmas, a particularly agitated customer nearly killed the staff at a McDonalds over the matter of a fistful of cents, or some $0.40 to be precise. The best part: it was all caught on tape.
Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."
"I’m tired of being outraged!"
"... America has followed the Soviet Union down the path of re-engineering its ideological culture... shifting towards a new socialist middle ground where centralization has woven the macro economic system tighter around a supra-sovereign statehood... They will say no one saw it coming... The sad reality is that the disorganized masses will remain ignorant to the whole process as they become consumed with television news drama that hides the structural truth behind the engineered cultural implosion of the American identity."
One of the perks of being a president: having your own personal, taxpayer-funded chef. And in the case of Barack Obama, this means an instrumental player in the development of Michelle Obama's controversial "school lunch program", one who also happens to be "Executive Director of the First Lady’s Let’s Move! initiative, the first-ever White House Senior Policy Advisor on Nutrition, and personal chef to the First Family." He name is, or rather his name was Sam Kass, because alongside pretty much everyone else close to Obama in recent few years, Chef Kass is done feeding the First Stomach and is also getting the hell out of Dodge the White House.
For those, who are leery of seasonally-adjusted government data (showing soaring low-wage jobs offset by crashing employment in the energy sector and M&A synergies which mysteriously are never captured), or sentiment surveys and confidence polls (of Wall Street executives and government workers), here is the latest data from McDonalds. Showing the worst US comp store sales in nearly 12 years at -4.6%, one does wonder if following America's inability to even pay for sub-$1 meals, mass starvation will follow?
October was a historic month for McDonalds. While the investing public was already well aware that things are bad and getting worse when it comes to demand for the iconic hamburger following MCD's 30% plunge in Q3 profit, moments ago the troubled fast-food chain reported that in the first month of the fourth quarter it celebrated a tragic anniversary: one year of US comp store sales without a single increase, following a 1% drop in US October sales! This is the first time in history when MCD has anniversaried negative same store sales in the US.
Moments ago, McDonalds not only released earnings and revenues, both of which missed - something which was largely expected since the backward looking data had been telegraphed by MCD's recent global selling collapse - blanketed by atrocious commentary, but it disclosed its September global retail sales which were for lack of a better word, a disaster, after reporting global sales which dropped 3.8%, below the 3.2% expected, and the worst global month since at least 2003. The pain was everywhere, with Europe plunging 4.2% (est -0.9%), Asia down 7.5%, and the US down a whopping 4.1%, far below the 2.8% expected, and also the worst month in over a decade.
Latest Central Bank Sticksave Halts Futures Slide, Sends E-Mini Soaring After ECB Said "Looking To Buy Bonds"Submitted by Tyler Durden on 10/21/2014 06:41 -0400
To summarize: the S&P 500 is now almost 100 points higher from last Tuesday as the global central bank plunge protection team of first Williams and Bullard hinting at QE4, then ECB's Coeure "ECB buying to start in a few days", then China's latest $30 billion "targeted stimulus", then the Japanese GPIF hinting at a 25% stock rebalancing in the pension fund, and finally again the ECB, this time "buying of corporate bonds on secondary markets", rolls on and manages to send stocks into overdrive. Even as absolutely nothing has been fixed, as Europe is still tumbling into a triple-drip recession, as Emerging Markets are being slammed by a global growth slowdown and the US corporate earnings picture is as bleak as it gets. Because "fundamentals."