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McD's has been beating expectations the last few quarters. Every so often a company grows too fat and the CEO realizes cutting some of the experienced white collar guys is a way to both streamline the management and save money. The bankruptcy comment was indeed ridiculous.Quote:
Originally Posted by 313WX
Oh, if you have some inside info that tells me where I'm wrong, I'd love to see it. From what I have read, this isn't about cost cutting but about reorganizing and advancing their digital agenda. So in the near future, be ready to hear about more machines and less people. It's more about earning more money for the stock holders and the hell with the white collar workers. Corporate is all about the stockholders.Quote:
Originally Posted by 313WX
There's a balancing act, and a lot of people simply do not want to work. My wife's nephew got a job stuffing bread into bags for a local food distributor. All things considered, it's a cushy job - not hard labor, you're in a temperature controlled warehouse, it's just boring, but you can listen to music if you want. Starting wage was $15/hour plus benefits, with a 50% bonus if you showed up on time and worked your whole shift. That's $25/hour to put bread into bags. They had a hard time getting people to work at all.Quote:
Originally Posted by Canadian Visitor
He left that job to work at a controls/panel shop making even more money. Same deal, nice temperature controlled warehouse conditions, not hard manual labor, making even more money - upwards of $35/hour, and *they* had problems keeping staffed up. He was made a supervisor after three months because he did what he was told and showed up on time, which put him in a class above the majority of the other workers.
You're playing a game of semantics.Quote:
Originally Posted by jcole
To reduce labor expenses by laying off a ton of workers company-wide is definitely a form of cost cutting. Companies only resort to mass layoffs if they feel there's no other way to quickly improve their cash flow and/or increase profit [[and they're desperate to do so).
So has GM, yet they just had to beg 5K workers to leave.Quote:
Originally Posted by 401don
Keep in mind, cost cutting decisions such as layoffs are also forward-thinking, not just based on past results.
In McDonald's case for example [[and actually i a lot of companies), the significant cost increases from the COVID and Russia/Uktaine supply chain log jams will really start to impact their bottom lines this year, not to mention they will have to start refinancing their corporate debt with significantly higher interest rates than they've been used to.
Unreal. It appears that selling fear daily has no limits these days. The Idiots will believe anything.Quote:
Originally Posted by Richard
https://www.google.com/finance/quote...GxAY&window=5Y
Question is, what happens when they shut 26 Burger Kings? Do we solemnly shout; "God Save The Kings"? Maybe not, I don’t know.
This is layoffs of corporate employees, not employees at the stores and it is to restructure and trim operations. Go read the Forbes article.
Oh, and major corporations are always looking to improve profit. As I said above, it's all about the stockholders, baby. That's all that corporate America cares, and is supposed to care about.
Quote:
Originally Posted by 313WX
Not even the famed Golden Arches are immune from this year's growing pool of bankruptcies. Since the start of 2023, Corner Bakery, two major Burger King franchisees, and a Popeyes franchisee have all sought bankruptcy protections to help fix their financial woes.Quote:
Originally Posted by ABetterDetroit
This is a rare bankruptcy declaration from a McDonald's franchisee, coming more than six years after a smaller operator for the fast food chain, the Iowa-based Brown Customer Delight Group Inc., filed for bankruptcy in 2016.
Only idiots think they understand everything.
During the pandemic lots of companies stock went through the roof only to be shutting their doors in bankruptcy 1 year later.
- More than a dozen major retailers have said they will close at least 1,412 US stores in 2023.
- Amazon, Bath & Body Works, Walmart, and Foot Locker are among the chains shutting down stores.
McDonalds Stock went up because they signed franchise deals in Mexico,China and other countries,that’s how corporate makes its money,by selling franchises,if the individual franchise owners are feeling the squeeze,like BK in Detroit,the stock means nothing,because it has no direct impact on corporate,well it apparently does to some idiots.
McDonald’s is known for its real estate business as well because a huge chunk of revenue comes from a property that it rents to the franchisee for the setup of outlets. The number of conventional franchised stores at the end of Q1 2021 was 21,496. Likewise, Conventional franchised stores’ had negative YoY growth of 1.57% concerning the previous year’s Q1. In Q1 2020, conventional financial stores were 21,838.
Stands to reason as real estate goes up so does McDonald’s stock,just as if real estate drops so will their stock value.
If you look at the bigger picture
General Motors [[GM) said last month it is cutting salaried and executive staff positions, after previously saying it wasn’t planning layoffs. In February, FedEx [[FDX) announced plans to cut 10% of its executive team as it looks to streamline its operations. Boeing [[BA) is also looking to cut around 2,000 jobs in its finance and human resources departments. Separately, UBS [[UBS) is preparing to lay off between 20% and 30% of its workforce following its planned takeover of Swiss bank rival Credit Suisse [[CS), local newspaper SonntagsZeitung reported Sunday.
It’s the white collar or middle to upper class jobs that are being eliminated,what does that leave left ? Those at the top and those at the bottom.
So why are so many companies cutting the jobs that reflect the most on their bottom line ,after that there is nothing left to cut,cutting the lower end of the workforce does not make a dent on the bottom line.
Tech has been cutting workers Jan of 2023 alone 68,000 or over 118,000 to date and they are just getting started.
When you cut workers your bottom line goes up because you have less labor costs which is reflected in a rise in stock returns,it is not a sign of a healthy company,it just says that they met expectations for that 1/4 ,but they had to lay off 60,000 + employees in order to meet that goal.
The last thing you want to do is declare bankruptcy because the rats flee a sinking ship,so when companies start cutting their highest paid workers to cut cost and increase stock value,it’s the last option available before bankruptcy protection.
It does not matter what the stock is currently trading at.
McDonald’s joins a growing list of corporate giants who have been forced by the changing environment to partake in large-scale layoffs to prioritize profits.
https://www.zacks.com/commentary/207...aa729e0cce6c44
I never said otherwise.Quote:
Originally Posted by jcole
BTW, Forbes if I'm not mistaken is the same publication which reported several weeks ago that Tesla would be moving its HQ from Austin back to California, which was false [[they eventually did a stealth correction after being called out on it). So it's not exactly a credible source.
Quote:
Originally Posted by Cincinnati_Kid
Correction. I was just informed the WC on 9 Mile and Telegraph is being remodeled, not closed. Good...
"Amazing" that one major restaurant business firm located in another state entirely can have operations so widespread in the Detroit area.
I hope that some local entrepreneurs can take over the spaces, whether or not they end back up as Burger King outlets, shouldn't be a preoccupation.
They get asinine about it though,I have tried to lease closed national chain restaurants but they will not do it,they would rather let them sit and rot.Quote:
Originally Posted by Hypestyles
Where I am at I can show you at least 20 that have been shut up to 10 years and they do nothing with them,first it is the weeds,then the homeless and busted winders,then the boards and 8’ tall chain link fences.
Its like the major supermarkets when they vacate strip malls,they have 20-30 year leases,they will pay the lease and let it sit empty so the competition cannot get in there,so the rest of the plaza goes to crap in the process.
When my step mother was a deputy mayor of a city,she was the only one I have ever seen to get a major retailer,wal-mart- to do something about a vacant derelict shopping center,but I think that had more to do with she was such a wacko that they did it just to get rid of her.
The problem for cities is those buildings are owned by a corporation,you cannot serve a corporation papers to comply,because they have to be served to a physical person,a corporation is not a physical person.