[Damedius]

(09-02-2013 04:59 AM)TheSlayer Wrote:  

(09-02-2013 03:36 AM)Damedius Wrote:  

(08-31-2013 01:46 PM)kerouac Wrote:  

McDonalds is a publicly traded corporation, so their financials are open for all to see.

http://finance.yahoo.com/q/is?s=MCD&annual

McDonald's made $5,464,800,000 Net Income in 2012 in the US. That's how much it made after all expenses, wages, etc. They're not barely making it by as many people on here, and the fox-news-osphere would like you to believe.

I have had some sleep and went over the numbers. If McDonalds raised their workers wages by just $2/hr world wide it would evaporate their profits. This assumes like you suggest that they were to take the hit as a corporation and not pass it on to the consumer/franchise owner.

http://en.wikipedia.org/wiki/McDonald's
They have 1.8 million workers worldwide.

http://nbclatino.com/2013/08/29/fast-foo...ter-wages/
I have heard 24 hours per week thrown around as the average a fast food worker works per week. So I'll use that for the example.

24 hours x 52 weeks=1248 hours per year

1248hr x 1.8 million employees = 2 246 400 000 or 2.246 billion total employee hours worked.

2.246 billion x $2/hr wage increase = 4.492 billion dollars.

A $3/hr increase would put them at a net loss. While their profit numbers seem like they are enormous. They aren't that big considering how many stores they have and how many people they employ.

There are few problems with your calculations. You are wrongly assuming that all 1.8 million of their workers are minimum-wage restaurant workers. Out of that 1.8 million, they have thousands of corporate workers around the world (who work for a salary and not on an hourly wage) and even within their restaurants their store managers and assistant store managers are already salaried as well. This means that you can't use 1.8 million as basis for your calculations. The real number of minimum wage workers in their restaurants which should be used for this calculation is much lower.

Secondly, within the hourly workers who work in their restaurants for minimum wage (around the world since you used 1.8 million) not all of them are demanding an increase in the wage. For example, in Ontario that minimum wage is already $10.25/hour. Why would they increase their minimum wage for places that already have 'acceptable' minimum wages say like Canada and Australia.

Once you subtract the appropriate number of workers accounting for the two factors I listed (which is basically minimum wage workers in the US only), the real number is much much smaller than 1.8 million. As such, the point others are making about the company splitting their revenue/profit wouldn't evaporate their profits as you claim. This is not to say that my position is that they should definitely raise the wages for their restaurant workers $15/hour. I just want to make sure that the numbers being to debate are being presented accurately.

True.

However the number given was a total for worldwide profit. Which means it is in itself inaccurate for the purpose of just the US.

So I believe the two cancel each other out.

Also the vast majority of McDonald's employees work in stores. So it wouldn't alter the calculation by much.

Third the point is here is to show how a single dollar raise to employees can have a huge impact. Which I believe it does. It's not perfect by it serves the purpose.

(I should also add that $10.25 in Ontario doesn't go as far as $7.25 does in some places in the US. For instance Montana.)