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Chart Of The Day: When $0.99 Becomes Unaffordable, We Have A Problem
Earlier today, fast food juggernaut McDonalds reported same store sales for the month October. At -1.8%, this number was well below expectations of -1.1%, and a drop from September's 1.9%. It was driven by a 2%+ drop in comp store sales across all locations: US, Europea and APMEA, with the US performing just as bad as Europe. Most importantly, this was the first monthly drop in MCD comp sales since March 2003! So our question is: at what point does the perpetually self-deluded US population finally admit to itself that when even 99 cent meals are no longer affordable, that this country has a problem?
Charting the last 4 years of McD sales, and eagerly looking forward to 4 more years.
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*losing
He's answered you over and over. Right now, you're just playing with yourself, in more ways than one.
Me thinks maybe Flak was beat up one too many times as a kid.
Just another nobody being a 'bigshot' behind a keyboard.
His trends are predictable
Do you want to play?
Worm looks like he is all tired out from running around...
So would you like to defend the article in question?
<crickets>
Don?
I think what a lot of people are missing is that we are currently undergoing a shift in thinking. More and more people are becoming hip to the fact that McDonalds (and all fast food and sugar and HFCS and prescription pills and vaccines etc...) are COMPLETELY awful for them. It is not a gigantic portion of the population but it is definitely enough (and growing everyday) to put a pretty good dent in some sales. Soon enough it won't matter if they are giving the shit away for free, people who are educated on the subject will not buy/use it. These companies are in trouble, long term, and there is nothing they can do about it...
The drive-thru line at In-n-out is still wrapped around the building at 10 oclock at night, I'm not sure these people got your message. Maybe McDonalds just serves crappy food!
In-and Out prides itself on the QUALITY of their food...number one reason why they have refused to start franchising. At least that is the public perception, as perception is reality....And McDonalds has ALWAYS served crappy food. You think the Big Mac has changed in the last year? Fries? Hamburgers?....
Potentially, you provided an explination. However, the chart is for sales in the US.
What surprises me is that they put HFCS in Meat Products. I know it is Bologna, hot dogs and I even found it in pre packaged sliced Roast Beef, Ham. Oscar Meyer is the worst. They fill their products with Partially Separated Meat (if you want to call it that), and HFCS.
The Doctors & Dr.Oz could have contributed to this
Sorry, but 3 bucks blown on the McD $1 menu is the best gut-bomb bang for the buck going. 1000 cal of 'heavy fuel". Cause if you wanna run cool......
http://www.youtube.com/watch?v=rkq_6uBV1wM
Sitting in McDonalds drive thru uses too much gas. Not cost effective to get off couch for ¢.99 Mc Mystery burger...
Hearing the spin on this well people are looking at calorie content. So there is less traffic,along with that the media folks said it's another sign the economy is getting better...
Eat McD - the food is bad - and you should feel bad.
mmmm, partially gelatinated non-Dairy gum-based beverages.
We have a beautiful three way squeeze for consumer, and all three forces competing to be stronger than other, guess where it ends:
-Income levels continuously dropping, thanks to now creation of 3 low paying jobs from 1 full paying job and not much new innovation/job creation
-Whatever income is coming in, its buying power is being steadfastly diluted by Ben Bernake with all the monkey tricks he can play
-The inflation targeting and hedonics in measurements has allowed prices of items that people need to go up signficantly and are not counted in mainstream measures. This is exerting signficant pressure on what people have discretion over spending.
Its like a three way enema to a patient to extract whatever is coming in from their a$$, ears, and nose
The three forces and monotonically persistent and competing with each other to become stronger with govt intervention, should not suprise anyone that it is making 0.99c unaffordable
Three for one special. You get 3 part time jobs for the 1 full time Job you used to have.
Hey, it helps the Job numbers as now you are counted three times as each job is counted as a new Job.
This proves the socialist blueprint is working
The poor are poorer and the working middle class are having their standard of living reduced so the disparity between the classes is being reduced
Answer: McEBT
Don't worry all New Yorkers living in areas effected by Sandy are getting an extra $100 on their snap cards in November to make up for any food they lost. They are also allowing them to buy prepared food with their cards. McDonalds is saved!!!
"WacArnolds is breaking up this family!!"
http://www.comedycentral.com/video-clips/czvwdf/chappelle-s-show-wacarno...
No that's not it. People are waking up to the fact that McDonalds absolutley sucks and their management and employess could give a rats ass how disgusting and unclean and nasty the shit is they serve their customers. The scumbags who work their and literally wipe their own shit on your food and laugh about it.
MCDONALDS BOYCOTT THAT SHITHOLE! THAT'S WHAT THEY SERVE YOU HUMAN SHIT WITH SOME SPECIAL SWEAT SAUCE AND SPIT ON A BUN!
Where are the employed going to get part-time jobs so they can pay for ObamaCare if McDonals's can't sell McDoubles?
No that's not it. People are waking up to the fact that McDonalds absolutley sucks and their management and employess could give a rats ass how disgusting and unclean and nasty the shit is they serve their customers. The scumbags who work their and literally wipe their own shit on your food and laugh about it.
MCDONALDS BOYCOTT THAT SHITHOLE! THAT'S WHAT THEY SERVE YOU HUMAN SHIT WITH SOME SPECIAL SWEAT SAUCE AND SPIT ON A BUN!
TYLER, should I short McDonalds here? I need the money ..
thanks, oldfruit
Soylent Green...it's people!
MCDONALDS IS A DISEASE PIT! LIKE ECOLI? FOOD POISONING? WANNA TASTE SOME DIRTBAGS CRAP FOR LUNCH? EAT THIER SNOT THEY PUT ON THEIR BURGERS? Talking some real sick slime balls that make your shit burgers. BON APATITE GO TO MCDONALDS and EAT HUMAN SHIT.
Spam purchasing will increasse for the 47%.
McDonalds Shit Your Pants Polkahttp://www.youtube.com/watch?v=DsAUaxZg0nA
That's a horrendous business its really disgusting and should be shut down.
You must be another big-gummit statist type...
macdonald spreads plague of obesity and diabetes around the globe. Perhaps it's not that people can't afford the dollar menu but instead they are saying the hell with it.
Don't forget, that's before tax ... so about $1.06 or more, plus gas to drive there, and, don't forget, the average full, regular meal there, comes to almost $10 by the time you get fries, coke, pie, etc.
So a family of four is $30+ ... and you're not getting your spoiled ass kids to eat off the $1 menu, don't care who you are!
It's a quandry b/c both parents now have to work to make ends meet and they don't have time, by the tiem they pay all the other bills heaped on them by every layer of government and credit card and bank and utility ... to cook!
So you think you can buy groceries and save that way but NO ... it's a fools errand trying to make ends meet since the outgoing cash is increasingly overcoming the incoming cash!
i vs. Mc
There can be only One Prefix to rule them all.
And in the darkness, the FED will bind them.
I seldom go to McDonalds except to use their wireless. I asked one of the workers if I could change the TV away from Fox news. Nope. MdD's made an exclusive contract with Fox noise. You get crap food and lied to all at once.
I eat at strip clubs. You can get an eyeful, an earful, a snootful and a belly full all at the same time.
The clams always look good, but I'm afraid to eat them. I fear they might be tainted?
All you fat effers really need to take up hunting.
They are hunting for jobs. And cake.
I guess the recession is over people are moving back upscale...lol...just kidding
People are also rejecting prescription drugs according to Bloomberg News.
Total system shutdown imminent? Repudiation?
When the US consumer shifted away from beef toward chicken and fish there wasn't a damn thing anybody anywhere could do about it. The needle moved, and it was a large movement, and that was that.
Yeah, but watch out: now they're feeding beef to farmed fish--a madcow vector. There aren't enough wild fish to feed many--so it will be for the decreasing number of those who can afford it.
[edited to add link]
http://www.examiner.com/article/scientists-study-risks-of-contracting-fatal-brain-diseases-from-eating-farmed-fish-fed-rendered-cows
Going without food and meds is a great sign of prosperity. This is obviously a fitness movement.
I've definately noticed the business at our local Mickey D's has dropped. From our own experience, we've found our family doesn't feel quite as "off" if we stay away from the cheaper menu items (on those very rare visits to this establishment). Therefore, the cost for a family of 4-6 can be pretty outrageous compared to good old home cooking.
We've discovered that the cheaper products tend to not sit well in the digestive system for any of us. So, we tend to stay away.
It is surely better for everyone if they avoid fast food whenever possible - since most cannot afford health insurance it is best to change eating habits and not expose the body to so many unknown food substances.
We've discovered that the cheaper products tend to not sit well in the digestive system for any of us. So, we tend to stay away.
Yep, tough to digest SAWDUST.................................
Maybe it would help if you ate a bunch of termites with it?
Fast food used to be cheap, fast, and resemble food appreciably more than it does today. It's no longer cheap nor particularly fast either. Plus most stores haven't been cleaned properly so the indoor environment is detrimental to one's health just waiting in line. Ever notice how often fast food restaurants burn down or are dismantled? It's the only way to get the grease/bacteria/mold/virus off the surfaces and out of the air.
yet another indicator of arrival in the 3rd world
Recently recompiled all the foods bills for a couple of months and they doubled since the last time I did this. Granted, it's not all inflation, but 100% increase is NOT only due to habits changes.
I have found buying STORE brands, are 90% of the time as good, if not better than the name brand crap,and cost a third less or more.
Last year at TG I bought three 18-20# Turkeys, @ $0.39#, now they are $0.99, or $0.59 w/ a $50.00 purchase.
(RE: I last time did this in 2010, pre-QE2)
Ya know, it's not that 99 cents has become unaffordable. It's more likely that their food has become unpalatable.
Smaller and nastier.
After fasting three full days I still could not tolerate the thought of eating non-food.
I'm with hedgeless!
Install EBT check-out - sales will increase by 25%!
Yipee, four more years of status quo.
Install EBT check-out - sales will increase by 25%!
Already did.
The portions are too small.
That's because Cigar Boy (Clinton) was too busy campaigning for The Kenyan to stop off for a Big Mac. Watch the sales come back strong now that the campaign is over.
He's vegan now, after the 4 way bypass, and some follow up stints. One big mac over the line baby.
http://yourlife.usatoday.com/fitness-food/diet-nutrition/story/2011-08-23/Bill-Clinton-declares-vegan-victory/50111212/1
http://usatoday30.usatoday.com/news/washington/2010-02-11-clinton-hospitalized_N.htm?csp=hf&utm_source=twitterfeed&utm_medium=twitter
And the rent is too damn high!
Poop In Mcdonald's Side Saladhttp://www.youtube.com/watch?v=yzhUHKdQdnM
Mice Running Inside McDonald's Big Mac Bun Packages!!! Michaelangelo509
http://www.youtube.com/watch?v=4J9iQADMa6s
McDonalds the help
http://www.youtube.com/watch?v=2pua_AZta-I
McFlation!
And when 99c becomes unaffordable for the 99%, we have a 1% Problem
$6.00 fully cooked chicken at the grocery store, or $6.00 camel burger and fries at Mc Donalds? That's a " No brainer".
Two words: rainforest beef!
Sawdust and shredded cardboard, bitchezzzzzzzzz!
Ron Paul says it best today:
Rep. Ron Paul, whose maverick presidential bids shook the GOP, said in the wake of this week's elections that the country has already veered over the fiscal cliff and he sees no chance of righting ship in a country where too many people are dependent on government.
"We're so far gone. We're over the cliff," the Texas Republican told Bloomberg Television's "In the Loop" program. "We cannot get enough people in Congress in the next 5-10 years who will do wise things." The video can be seen at http://www.bloomberg.com/video/ron-paul-on-fiscal-cliff-and-vows-to-compromise-MYkAiqYBTaiHwXZL9Tvxkw.html.
Mr. Paul, who is retiring after 12 terms in the House, said voters on Tuesday rejected Mitt Romney because he had opposed the government bailout of General Motors and Chrysler.
"The people in the Midwest voted against him: 'Oh, we have to be taken care of!' So that vote was sort of like what we are laughing at in Greece," Mr. Paul said.
"People do not want anything cut," he said. "They want all the bailouts to come. They want the Fed to keep printing the money. And they don't believe that we've gone off the cliff or are close to going off the cliff. They think we can patch it over, that we can somehow come up with some magic solution. But you can't have a budgetary solution if you don't change what the role of government should be. As long as you think we have to police the world and run this welfare state, all we are going to argue about is who will get the loot."
Maybe the same store comps are down because the 99 cent items are THE ONLY ONES that are selling.
There is an easy fix for this. Currently the nearly 50 million food stamp recipients are barred from using their stamps cards on cooked food. It is not a stretch to think Obama will relax this rule and allow SNAP people to purchase low value cooked meals from MCD.
Can't have the big cap corps dragging down the stock market now can we. So the circle will now be: FED prints, buys treasuries, GOV uses the money for the new (MCD) SNAP program, people get their fast food poison, MCD soars, magical stock market levitation!
50/50 chance there is someone in the government contemplating this today.
...Obama will relax this rule and allow SNAP people to purchase low value cooked meals from MCD.
It's certainly possible, but SNAP is administered on the State level. He could propose the idea, but there's no guarantee the State SNAP programs would comply. It would depend on how important the McD's (or any fast-food joints) contributions are in the State Congressional campaigns.
Too expensive? No. Food is *absolute* *GARBAGE*? Yes, most definitely, it is not edible by humans.
People are finding they can have better quality food cheaper if they make meals at home. Gotta strech that dollar now that taxes and prices have increased.
+1
The poorer I get the better cook I am. You should try my pot roast with potatoes, carrots and on yons.
The 2 pounds of skank beef are about 6 bucks, got a sack of taters for a dollar, the carrots were $2, the onyons pretty cheap.
Anyway, we eat three dinners on that pot of stew. 6 meals for about $10, and it's not bad at all.
I even wash my hands and use clean spring water. You can still eat for a reasonable cost, but you have to do some cookin.
People are finding they can have better quality food cheaper
I think this is the real answer, I stop for lunch almost everyday during work. For the price of a Big Mac, fries and a drink, I now have many more choices in the same price range. Since Micky D's has raised their prices so high (not the dollar menu ) They are competing with many oather chains that serve on real plates, with someone that brings you your food.
The only thing that you don't do at fast food is actually put the burger together, You serve yourself, prepare your own drink, find condiments, bus your own table, etc.....
Why pay a premium for this type of service.
The last time I had a McD's patented "Quarter Pounder" the 'meat' was just as foamy and spongy as the hamburger bun.
Though, I recently ate some semi cold fries a co worker offered me and my stomach cramped for the rest of the day. Something is seriously wrong with this food. I know of multiple people who, regardless of what they ate from the menu (drinks et al.), the food shredded their intestines and they never went back.
No wonder they had a mascot called "The Grimace" a giant, overweight, purple blob that represents the end result of grimacing on the toilet trying to pass their food.
Obama has an explanation. People are getting richer under his Presidency and they're switching to upscale eateries.
They've been eating EBT food at home lately.
Unhappy meal :(
Ron Paul said today that people who did not vote for Mitt in the Presidential elections were idiots!
He also said that the tick and leech society that Obama represents will be America's downfall.
Too bad there are so many stupid workling white folks , .........many apparently makle ZeroHedge their home.......
How did that Ron Paul vote work out for ya?
Morons
I had to give the "Translator" post some time to ferment.
Morons? Bashing the Ron Paul folks? How did the Mitt Romney vote work out for you? I have some inside trade info for you Mr. Translator: The GOP is officially dead and as a three term elected Officer of said party, I would like you to know that people such as yourself helped to destroy the party and any chance of preserving what few liberties we have left.
I was a Treasurer in my first elected "civic duty" term. I wrote the checks and balanced the books. I know exactly where the campaign money came from and where it went. Mr. Translator, some day, I might enjoy the opportunity to explain to you how politics really work and how it is funded. In the meantime, my best advice to you is to keep reading and stop posting as you are outmatched.
http://capital3x.com/think-tank/daily-charts-and-analysis-8-nov-2012-all-hell-break-lose/ hell break lose as ES tumbles to new lows
Fuck off, crapital3x spammer!
Everyone is posting here like people are eating home and skipping the fast food lane but I think the belt tightening only extends to the value meal (shitty diarrhea menu maybe more appropriate). Every fucking morning I drive to work the Starbucks near my house is jam packed, the line loops around the building and spills out onto the street blocking traffic. Meanwhile the McDs right next to it has an empty line.
People will skip that .99 menu but they'll find the money, I mean debt, to spend $5 or more per trip, 2 to 3 times a day, for their liquid drug fix from Crackbucks.
Consumers aren't wisening up or stretching that dollar, they've just picked their poison.
I was always struck by the resilience of the Starbuck's regulars, too.
I have come to believe that these are the folks who (for whatever reason):
1) have kept their job (or their overpaid spouse?)
2) believe in the economic recovery that's been ongoing since '09
3) are basically oblivious to most of their surroundings
I've actually heard people say, "I don't spend much at Starbucks--only a latte or two a day."
If $.99 is too expensive for the people, the obvious answer is to print more money!
P.I.N.K. slime
doesn't help
[the bottom line].
you can use EBTs in more and more places.. they are probably ditching McDs and going to the steakhouses and workers can only afford can soup
In economics, an inferior good is one whose consumption drops as income rises. A common example used is the potato. I'm surprised CNBC and other stations have not argued MCD's sales drop is a sign of rising income. Or maybe they have already.
I remember back in the day you could get a Whopper for 99 cents. A whole lot o' whoppers got me through grad school. And I lived to tell the tale.
The bigwhigs at McCrappers need to lobby CONgress for the SNAP Menu. That will go over big time.
In the early days of fast food, it really wasn't bad at all. Real beef, fresh tomatoes, wasn't bad.
My how things have changed.
I remember when the Whopper, Fries, and Soft Drink lunch combo special was 99 cents - back in 1973. A Whopper Junior was 99 cents until not long ago.
You got it wrong. It's not when Americans admit they can't afford .99 cent meals, it's when McDonald's admits they can't keep the product on sale forever.
Sound familiar Bush Temporary Tax Cut enthusiasts?
Sales are temporary. Keep the sale on and your crowd expects it (Right Facebook, LinkedIn, Zinga?)
You don't see Mercedes Benz with the perpetual sale sign.
Figure it out folks. Anything premium is worth the price.
Related anecdote: I shop pretty much every week. The 1lb block of mozzarella is "regularly priced" at about $7 at one nearby grocery. The sales drop the price to about $4.
Every other week, the sale ends and the cheese just sits there. Then it goes "on sale" again and they sell out the stock of the week-old stuff.
It'd be a lot funnier if it weren't so depressing.
lol
supoer bullish
it means people get so rich and want to spend money at upscale restaurant.. not mcdonal.
Good job, Obama.
Anybody around here remember this jungle from the early 60's:
99 cents for a four course meal?
Sounds to me like that's a steal!
Demographic outlier alert.
Do you remember when we went to the moon?
Its not that i cant afford .099, Its just that Micky D's gives me a bad case of the farts
It's not about affordability. They finally sucked all recognizability out of the food. It's almost plastic. I used to get the sausage egg McMuffin once in awhile. No more. Now, it's one stop away from pellet food.
Even soylent green sales are down and IIRC, they take EBT cards. We're fucked.
Perhaps McDonald’s should take Bloomberg’s advice today to Republicans on how Gravy-Train politics works and cater more to the Hispanic if it wants a winning menu - by beefing up the Mexican taco and cutting back on the American burger.
Bloomberg, loud supporter of America’s Jewish-backed, anti-white 1985 immigration law, spells it out rather bluntly in Republicans Losing Key States as Hispanics Shun Party. Here's how - from Bloomberg News:
If demographics are destiny, Democrats are positioned to dominate U.S. national politics until Republicans can attract Hispanic voters who shunned their party in the presidential election.
“It’s a huge issue. It’s a big reason why they lost states like Virginia, Florida and Colorado,” said William Frey, a senior demographer at the Washington-based Brookings Institution. “As Hispanics continue to disperse to the South and West -- Republican strongholds -- the party becomes increasingly at risk.”
As Hispanics make up more of the U.S. population, they also are transforming the country’s politics. In this election, Latino voters represented 10 percent of the electorate, up from 9 percent four years ago.
President Barack Obama captured 71 percent of the Hispanic vote as he won a second term, according to a national exit poll. That translated to a 44 percentage-point advantage over Republican challenger Mitt Romney, who won just 27 percent of the Hispanic vote -- down from Republican shares of 31 percent in 2008, 44 percent in 2004 and 35 percent in 2000.
Beyond the presidential race, 28 Latinos won House seats, including three who defeated Republican incumbents, the National Association of Latino Elected and Appointed Officials Educational Fund said in a statement. The results added four Hispanic members to the House, creating the largest class of Latino U.S. lawmakers, the group said. In the Senate, Hispanics gained a seat with a victory by Texas Republican Ted Cruz…
Matthew Dowd, a political analyst for Bloomberg News, said Republican President George H.W. Bush and his son, former President George W. Bush, also would have struggled to win amid the composition of the 2012 electorate, which had the lowest level of white voters on record at 72 percent.
Minority Babies
“They would lose,” Dowd said on Bloomberg Television yesterday.
To see the emerging importance of the non-white vote, Republicans need look no further than hospital birthing units.
Minority babies outnumbered white newborns in 2011 for the first time in U.S. history. The percentage of non-white newborns rose to 50.4 percent of children younger than a year old from April 2010 to July 2011, while non-Hispanic whites fell to 49.6 percent, the U.S. Census Bureau said in May.
“After 2012, the white vote in American shrinks to about 68 percent, and there’s no path to the White House without a significant Hispanic vote,” Al Cardenas, chairman of the American Conservative Union and an ambassador under President Ronald Reagan, said in an interview.
Rapid Growth
The figures highlight the rapid growth in the Hispanic and Asian populations, both of which have surged by more than 40 percent since 2000.
Four states -- Hawaii, California, New Mexico and Texas, plus the District of Columbia -- now have majority-minority populations. A 2009 Census report estimated that…whites will become a minority of the total population after the 2040 Census, making up 48.5 percent in 2045…
Blacks and Asians joined Hispanics in strongly backing Obama. Nationally, non-whites made up 28 percent of the electorate, up from 26 percent in 2008, the exit polls showed. Obama won 93 percent of blacks and 73 percent of Asians...
http://www.businessweek.com/news/2012-11-08/hispanic-political-clout-seen-in-2012-election-and-beyo
No lie. If you want to prepare your kids to be successful in America, teach 'em some Spanish.
agree with newCallapsed......maybe we are just sick of eating shit. I won't darken the door of McGarbage......