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Fast Food locations closing down rather than pay employees more

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these are their public statements:
http://investor.ckr.com/press-relea...nary-unaudited-fourth-quarter-and-full-year-0

revenue $1.15b
expenses $940m
diff $218m

though I must say I'm not familiar with what EBITDA is

You're misreading the statements. They show pre-tax profit of $20 to $23 million. See the financial results that are the second to last. It starts off with the pre-tax profit of $20-23M

EBITDA means Earnings Before Interest (expense) Taxes Depreciation And Amortization.

Fern
 
In a perfect competitive market, there would be a single equilibrium price for low-skilled labor across the entire world. That's because the theoretical perfect market is based on the non-existence of things such as national borders, relocations costs, and perfect information. Basically, worker A would know, at all times, which companies have available positions, exactly how much value he would add to the company, and he would be able to move instantly to the highest-paying job for which he qualifies. Similarly, company 1, would know every person who is willing and qualified to fulfill an employment need (without the need for interview) and would not incur any expense in locating and hiring new employees to replace those who start to shirk their work or to meet growing demand. In such a perfect world, a minimum wage set above the equilibrium price causes unemployment.

We don't live in a perfect world. Different population centers have different supply and demand for low-skilled jobs, and there are transaction costs when workers want to relocate to available jobs, or when companies want to relocate to jobs to locations with higher demand for the products. In such an imperfect market, different population centers have different prices for low-skilled labor (different wages). Further, disparity in bargaining power between employers and employees can result in below-market wages (if, e.g., an employee is desperate for a job and can't move because their spouse works in the area will accept a low-ball offer) or above-market wages (if, e.g., an employee in a competitive labor market quits without notice, an employer might offer a higher wage to fill and urgent vacancy without a long interview and hiring process).

Let's be honest, more often than not, employers have stronger bargaining power, so the market-wage for low-skilled labor tends to be lower than the equilibrium-wage in a perfect economy. In such situations, minimum wages correct the market and will not result in higher unemployment.

However, remember, that the imperfections also result in differing supply and demand curves for different geographical areas. That means Seattle might have a different market wage than Olympia, Phoenix, Detroit, and Backwoods-Village. In this more realistic situation, raising the minimum wage might not cause any unemployment in Seattle, but it might cause people to lose jobs in Phoenix and backwoods-village. That's why minimum wages aren't great federal policy. It's better to let states and cities set them, as they are in a better position to analyze the effects and determine whether a minimum wage was set too high.
 
Investors are out of money.

venders are likely out of money.

Bank is out of money.

No more sales taxes etc, so the city/county is out of money.

And it's not just their "model".

The economy has been poor for many years now.

Then the gov adds additional costs in the form of a higher minimum wage, Obamacare and likely increased utility costs.

IMO, it's damn stupid for the govt to be imposing these measures now. If they must be done, do it when the economy is is hard charging. Not now.

Fern

I just had to quote and bold complete idiotness

Have you looked at the stock market lately with all the new records?

Investors and banks out of money, oh my god, how can someone be so wrong?
 
I just had to quote and bold complete idiotness

Have you looked at the stock market lately with all the new records?

Investors and banks out of money, oh my god, how can someone be so wrong?

If you actually comprehended what Fern wrote; you would see what an idiotic statement you made:colbert:

Yes, it is a crime. People are out of jobs. Investors are out of money. venders are likely out of money. Bank is out of money. No more sales taxes etc, so the city/county is out of money.
Fern

When a store is closed/failed; the resulting impact would be what he stated.
 
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In a perfect competitive market, there would be a single equilibrium price for low-skilled labor across the entire world. That's because the theoretical perfect market is based on the non-existence of things such as national borders, relocations costs, and perfect information. Basically, worker A would know, at all times, which companies have available positions, exactly how much value he would add to the company, and he would be able to move instantly to the highest-paying job for which he qualifies. Similarly, company 1, would know every person who is willing and qualified to fulfill an employment need (without the need for interview) and would not incur any expense in locating and hiring new employees to replace those who start to shirk their work or to meet growing demand. In such a perfect world, a minimum wage set above the equilibrium price causes unemployment.

We don't live in a perfect world. Different population centers have different supply and demand for low-skilled jobs, and there are transaction costs when workers want to relocate to available jobs, or when companies want to relocate to jobs to locations with higher demand for the products. In such an imperfect market, different population centers have different prices for low-skilled labor (different wages). Further, disparity in bargaining power between employers and employees can result in below-market wages (if, e.g., an employee is desperate for a job and can't move because their spouse works in the area will accept a low-ball offer) or above-market wages (if, e.g., an employee in a competitive labor market quits without notice, an employer might offer a higher wage to fill and urgent vacancy without a long interview and hiring process).

Let's be honest, more often than not, employers have stronger bargaining power, so the market-wage for low-skilled labor tends to be lower than the equilibrium-wage in a perfect economy. In such situations, minimum wages correct the market and will not result in higher unemployment.

However, remember, that the imperfections also result in differing supply and demand curves for different geographical areas. That means Seattle might have a different market wage than Olympia, Phoenix, Detroit, and Backwoods-Village. In this more realistic situation, raising the minimum wage might not cause any unemployment in Seattle, but it might cause people to lose jobs in Phoenix and backwoods-village. That's why minimum wages aren't great federal policy. It's better to let states and cities set them, as they are in a better position to analyze the effects and determine whether a minimum wage was set too high.
No it wouldn't... didn't even read the rest. lol.

Guess where there would be a local premium for unskilled labor, oh yea some town with a giant coal mine or forest being cut down for lumber. So derpy. It takes extra compensation to motivate people to move for jobs. You can't just assume a glut of low skill labor compared to low skill jobs everywhere. You are projecting the situation in the US over the entire world and its not true. Nor are the worlds poor mobile enough for such homogenized prices, the truly poor walk, the poor ride bicycles, the middle rides mopeds, the rich drive cars, and the ultra rich take planes.

And that was my issue with the first sentence not sure about the rest.
 
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In a perfect competitive market, there would be a single equilibrium price for low-skilled labor across the entire world. That's because the theoretical perfect market is based on the non-existence of things such as national borders, relocations costs, and perfect information. Basically, worker A would know, at all times, which companies have available positions, exactly how much value he would add to the company, and he would be able to move instantly to the highest-paying job for which he qualifies. Similarly, company 1, would know every person who is willing and qualified to fulfill an employment need (without the need for interview) and would not incur any expense in locating and hiring new employees to replace those who start to shirk their work or to meet growing demand. In such a perfect world, a minimum wage set above the equilibrium price causes unemployment.

We don't live in a perfect world. Different population centers have different supply and demand for low-skilled jobs, and there are transaction costs when workers want to relocate to available jobs, or when companies want to relocate to jobs to locations with higher demand for the products. In such an imperfect market, different population centers have different prices for low-skilled labor (different wages). Further, disparity in bargaining power between employers and employees can result in below-market wages (if, e.g., an employee is desperate for a job and can't move because their spouse works in the area will accept a low-ball offer) or above-market wages (if, e.g., an employee in a competitive labor market quits without notice, an employer might offer a higher wage to fill and urgent vacancy without a long interview and hiring process).

Let's be honest, more often than not, employers have stronger bargaining power, so the market-wage for low-skilled labor tends to be lower than the equilibrium-wage in a perfect economy. In such situations, minimum wages correct the market and will not result in higher unemployment.

However, remember, that the imperfections also result in differing supply and demand curves for different geographical areas. That means Seattle might have a different market wage than Olympia, Phoenix, Detroit, and Backwoods-Village. In this more realistic situation, raising the minimum wage might not cause any unemployment in Seattle, but it might cause people to lose jobs in Phoenix and backwoods-village. That's why minimum wages aren't great federal policy. It's better to let states and cities set them, as they are in a better position to analyze the effects and determine whether a minimum wage was set too high.

Well that would be the worlds most useless economic theory because its never happened before in the history of humanity. Ohh where to begin.
 
Well that would be the worlds most useless economic theory because its never happened before in the history of humanity. Ohh where to begin.

That's where economic theory starts.

1. Imagine a perfect world
2. Analyze what should happen.
3. Observe the real world to see what actually happens.
4. If step 3 != step 2, analyze what factors in the real world effecting the outcome aren't included in step #1.
5. Create a new model based on the additional factors.
6. Repeat steps #2-5 until step #2 = step #3
 
That's where economic theory starts.

1. Imagine a perfect world
2. Analyze what should happen.
3. Observe the real world to see what actually happens.
4. If step 3 != step 2, analyze what factors in the real world effecting the outcome aren't included in step #1.
5. Create a new model based on the additional factors.
6. Repeat steps #2-5 until step #2 = step #3

There will never be a perfect world where beings as flawed as humans are in charge.
 
The problem: Average workers'/peoples' wages aren't keeping up in this economy.

Solution: Decree a law that workers'/people make higher wages.

Really? That's almost comically stupid in the big picture of things.

I think such a solution is one bereft of knowledge and ideas and nothing but a lazy man's shortcut. And it's not going to work. There are two valid ways to make more money: (1) Enhance your skill set and/or (2) be more productive. But even if you do those we'll be treading water as a country because we allow many thousands of non or low skilled workers to cross the border. You can't allow the low and non skilled workers in at such large numbers and expect the stats to get better.
-----------------

BTW: The Left seems to love Warren Buffet and even he admits he can't support a higher minimum wage because of uncertainty about its economic effect(s).

Fern

er....OK.

But then goods and services cost more....

Inflation goes up....

The USA is less competitive globally (bad in the globalised environment)

Less investment, less economic growth, etc.

More unemployment

Lower living standards...

Soooo, this is the price to pay so everybody can get more wages/salaries?
 
Good maybe I won't have to pay $5 for their crap burgers since they closed down stores that aren't making money.


Oh my bad, now I have to pay $6 because the CEO recorded "record profits" by closing down dozens of stores, thus cutting costs...so now I have to pay more to overinflate his ridiculous salary some more.
 
Good maybe I won't have to pay $5 for their crap burgers since they closed down stores that aren't making money.


Oh my bad, now I have to pay $6 because the CEO recorded "record profits" by closing down dozens of stores, thus cutting costs...so now I have to pay more to overinflate his ridiculous salary some more.

Why are you so attached to buying cheap, crappy burgers?



Maybe you should order some thai food and stop stuffing your fat face. Seriously guy who said ban fast food is right, it's disgusting and good for nobody and the companies that make it are disgusting and crooked and the people who make the food are disgusting.
 
1McDsBerg_3.jpg

95 NOK = $15.85


For that money I'm going to go to the local hoity toity burger place that employs fewer people and have grassfed bison and a beer.
 
Why are you so attached to buying cheap, crappy burgers?



Maybe you should order some thai food and stop stuffing your fat face. Seriously guy who said ban fast food is right, it's disgusting and good for nobody and the companies that make it are disgusting and crooked and the people who make the food are disgusting.

LOL, liberals...
 
If McDs is making that much money they must be making products that people enjoy although closing stores isn't a sign of success.
 
I wonder how the rising price of beef is affecting them. Maybe the droughts and their effects will cause more people to become vegetarians.
 
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