this post was submitted on 16 Jan 2024
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Work Reform

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[–] snooggums@kbin.social 65 points 10 months ago (7 children)

What a jackass.

McDonald's, which has raised prices by 20% over a two-year period, said late last year that it was starting to lose low-income customers.

20% price increase over two years you say? Certainly that was necessary to keep the company afloat!

McDonald's annual/quarterly gross profit history and growth rate from 2010 to 2023. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.

McDonald's gross profit for the quarter ending September 30, 2023 was $3.864B, a 12.12% increase year-over-year.
McDonald's gross profit for the twelve months ending September 30, 2023 was $14.317B, a 9.63% increase year-over-year.
McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021.
McDonald's annual gross profit for 2021 was $12.58B, a 29% increase from 2020.
McDonald's annual gross profit for 2020 was $9.752B, a 12.77% decline from 2019.

Other than a dip in 2020 that was more than replaced in 2021, McDonald's is right back on track with record profits and the only reason they are losing low income earners is pricing themselves out of that market.

[–] aubeynarf@lemmynsfw.com 8 points 10 months ago (2 children)

One thing that I learned recently from the Modern MBA YouTube channel, is that these fast food brands don’t run stores – they primarily charge franchise/royalty fees, and the store operators/franchisees see a significantly different and lower-profit-margin situation.

“McDonalds Corporation” is not where these expenses accrue.

[–] Anticorp@lemmy.world 3 points 10 months ago

It's true that the McDonald's corporation is in the real estate business, not the burger business. But the franchisees are certainly in business selling hamburger analogues. They wouldn't be on every corner if they weren't profitable. I read once that if you want to open a McDonald's, they won't even talk to you unless you have a million dollars cash. It takes a fuck ton of money to open a McDonald's franchise and people still do it, because it's a license to print money.

[–] snooggums@kbin.social 2 points 10 months ago

Those franchise fees are still tied to sales enough to have a dip during covid and continuous increases after which aligns with menu price increases.

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