McDonald’s Corp earnings face bigger problems than higher wages

Sales at McDonald's stores open at least 13 months fell 0.3% in February as its U.S. business slumped for the fourth straight month.

McDonald’s Corp. has bent to pressure to increase what it pays U.S. employees, announcing it will raise wages to more than US$10 per hour after 2016.

Although the wage hike represents approximately increase of approximately 10%, the fast food giant’s sensitivity to it is mitigated by a low mixture of company-operated restaurants within the U.S.

Credit Suisse analyst Jason West noted the U.S. market represents 23% of McDonald’s company-owned stores, and just 4% of its total locations globally.


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