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originally posted by: Phage
a reply to: pointr97
Here's McDonald's (Corp.) P&L. Being publicly held, they need to report this stuff.
www.marketwatch.com...
Gross (excluding D&A because those just go to the balance sheet): 12.49B
Pretax Net: 6.61B
Posttax Net: 4.00B
Pretax margin: 5.3%
Posttax margin: 3.2%
25 cents on a Big Mac combo.
Insane?
Do you think the franchisees (who actually determine payroll rates) do a lot better?
originally posted by: Phage
a reply to: pointr97
There is a pretty big difference between gross profit and net. Unless you think there are no overhead costs involved.
Not sure where you got those number though, See above.
McDonald's is subsidized? That's news to me.
originally posted by: Phage
a reply to: pointr97
Again...gross profit is not the same as net profit....unless you have no overhead.
net includes more of the long term debt, capital devaluation
then sorry, but they receive subsidies.
originally posted by: Phage
a reply to: pointr97
net includes more of the long term debt, capital devaluation
Nope. Look at the statement.
Depreciation, Depletion & Amortization are deducted from sales and I omitted them from gross profit on purpose because they carry to the balance sheet.
originally posted by: Phage
a reply to: undo
Well, for one thing, we want things that we don't have here.
For another, we want to spend as little as possible for them and if someplace else can make them for less...guess what?
originally posted by: Phage
a reply to: pointr97
My point(s).
No "insane" profit margin.
No subsidies.
Massive increase in minimum wage has ripple effects. Not only minimum wage workers will require increased wages in order to be fair. Skilled workers and those with seniority will expect (and deserve) increases.
No. In fact it's the opposite.
Doesn't that mean that McD's profit, even if it is a single dollar, is subsidized by my tax dollar?
originally posted by: Phage
a reply to: pointr97
No. In fact it's the opposite.
Doesn't that mean that McD's profit, even if it is a single dollar, is subsidized by my tax dollar?
If that person had no job at all they would be receiving more from the government.
If McDonald's lays that person off because the increase in wages reduces profitability, that person will receive unemployment insurance (decreasing government benefits) for which McDonald's has been paying premiums (and thereby increase their premiums)
A business model that integrates long term government assistance is not a viable model
originally posted by: Phage
a reply to: undo
I'm not saying super cheap.
I'm saying that if something costs less people are going to buy more of it instead of the same thing that costs more.
It's a very basic economic principle.