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But is this a true falling tide or simply McDonalds pandering to investors' expectations? That is, look ma, we're so serious and worthy we're laying off people

But is this a true falling tide or simply McDonalds pandering to investors' expectations? That is, look ma, we're so serious and worthy we're laying off people too. Imagine getting paid the big bucks to make such decisions. Bankrupt? Better to look for companies where leadership runs counter to "prevailing conventional wisdom" and actually leads for others to follow.

patrickthebold 4y ago
Great point. The article doesn't mention of McDonalds is profitable. I'd wager it is even without the layoffs. On one hand, doing layoffs may make investors happy, on the other hand if we get a recession because a bunch of profitable companies keep laying everyone off, then maybe that's not so great for investors after all.
- Fatnino 4y ago
  I think McDonalds stock just did really well. This is surprising to me. It's literally at it all time high.
- chiefalchemist 4y ago
  I believe that's called The Tragedy of The Commons.
rocket_surgeron 4y ago
McDonald's only made $6,000,000,000+ last year on $23+ billion in revenue at a ~35% profit margin. They reversed the downward trend in revenue (which occurred simultaneously with a tremendous increase in profitability) and bounced back from 2020 magnificently. Their stock price has ONLY roughly doubled in the last five years and their dividend has ONLY doubled in the last 10. Obviously that is not good enough so they're going to lay off a couple thousand people to get that margin up by two points. Pathetic. This is 100% a stock juicing play. I'm willing to bet there's a cadre of executives who all came on at the same time pre-pandemic (during the revenue turnaround) whose options are maturing and the price isn't where they want it to be because of the pandemic. McDonalds is as healthy a company as its food is unhealthy.
- mehlmao 4y ago
  Executives will destroy lives at random as a show of good will to the capital class. Time to bring back the guillotine.
- chiefalchemist 4y ago
  My only hope is that one day we have a media staffed by legitimate journalists that would convey such details. It's obviously not illegal. But the more the (consumer) market knows, the better its decisions on where to open their wallets.

patrickthebold 4y ago

Great point. The article doesn't mention of McDonalds is profitable. I'd wager it is even without the layoffs. On one hand, doing layoffs may make investors happy, on the other hand if we get a recession because a bunch of profitable companies keep laying everyone off, then maybe that's not so great for investors after all.

Fatnino 4y ago
I think McDonalds stock just did really well. This is surprising to me. It's literally at it all time high.
chiefalchemist 4y ago
I believe that's called The Tragedy of The Commons.

rocket_surgeron 4y ago

McDonald's only made $6,000,000,000+ last year on $23+ billion in revenue at a ~35% profit margin. They reversed the downward trend in revenue (which occurred simultaneously with a tremendous increase in profitability) and bounced back from 2020 magnificently. Their stock price has ONLY roughly doubled in the last five years and their dividend has ONLY doubled in the last 10. Obviously that is not good enough so they're going to lay off a couple thousand people to get that margin up by two points. Pathetic. This is 100% a stock juicing play. I'm willing to bet there's a cadre of executives who all came on at the same time pre-pandemic (during the revenue turnaround) whose options are maturing and the price isn't where they want it to be because of the pandemic. McDonalds is as healthy a company as its food is unhealthy.

mehlmao 4y ago
Executives will destroy lives at random as a show of good will to the capital class. Time to bring back the guillotine.
chiefalchemist 4y ago
My only hope is that one day we have a media staffed by legitimate journalists that would convey such details. It's obviously not illegal. But the more the (consumer) market knows, the better its decisions on where to open their wallets.