Jacobtm
Sr. Member
Posts: 3,216
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« on: July 14, 2009, 09:49:18 AM » |
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On McDonald's and profitability:
In 2007, they had 400,000 employees, the great majority of whom we can assume make minimum wage. They made 2.3 billion in profit in 2007. So they could spend about $5,000 more per employee per year before they have $0 in profit. Of course, not all their employees make minimum wage, so maybe if you just distributed the profits among the minimum wage earners, it'd be an extra $6,000 or $7,000 a year. Not very much as far as an hourly raise goes.
At that point they'd have to start charging more for all their stuff, and if the price of McDonald's appreciated by any significant degree, who'd even keep buying the stuff? Already a Big Mac is like $4 on its own wheras a real burger can be had for like $6, so they're only surviving by being ultra convenient and ultra cheap.
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