{"id":1418,"date":"2015-01-16T11:33:41","date_gmt":"2015-01-16T15:33:41","guid":{"rendered":"http:\/\/www.logikalsolutions.com\/wordpress\/?p=1418"},"modified":"2015-01-16T11:33:41","modified_gmt":"2015-01-16T15:33:41","slug":"mcdonalds-problem-is-not-the-menu","status":"publish","type":"post","link":"https:\/\/www.logikalsolutions.com\/wordpress\/investing\/mcdonalds-problem-is-not-the-menu\/","title":{"rendered":"McDonalds Problem is Not the Menu"},"content":{"rendered":"

There has been a lot of chatter about the financial situation at McDonalds (MCD) lately.\u00a0 All kind of chatter about revamping the menu, loss of market share, allowing more local store independence, etc.\u00a0 All of it is wrong.\u00a0 All of it is focused on the typical MBA thought process of “How can we change nothing and start making money again?”\u00a0 This process never works.\u00a0 It is based on the luck of some temporary downturn which will magically fix itself so the MBA can take credit.<\/p>\n

Here is the truth, warts and all.\u00a0 A large section of the American, and dare I say world, population has become “socially aware.”\u00a0 This “do unto others and make a buck” philosophy based on the even more fraudulent philosophy called “Rational Self Interest” has poisoned the well.\u00a0 The victims have decided ethics really do matter.\u00a0 Some companies have caught on, such as Starbucks (SBUX).\u00a0 While nay sayers dump on the botched announcement calling their program a “scholarship” and hinting they were financially contributing.\u00a0 So what?\u00a0 I hate coffee and don’t like Starbucks, but, they did something amazing.\u00a0 They cut a deal so that any one of their employees from the lowest paid on up could get a 4 (four) year degree and graduate with roughly $2,000 in student loan debt.\u00a0 I had more than that my first tri-mester in college back in the 80s.\u00a0 Hats off.\u00a0 Big applause.\u00a0 Ethics matter.<\/p>\n

In the case of McDonalds, they are viewed as evil, much like Wal-mart (WMT), Amazon.com (AMNZ) and even Google (GOOG).\u00a0 Oh, Wal-mart should be no surprise.\u00a0 There has been a documentary<\/a> about them for years.\u00a0\u00a0\u00a0 Given the news reports about conditions in warehouses for Amazon.com I can’t believe it will be long before there is a documentary about senior citizens keeling over in the heat.\u00a0 There has already been news stories<\/a>.<\/p>\n

2015 is shaping up to be the year the mighty Google falls from grace.\u00a0 The skeletons started falling out of the closet a while back with a tale about a Google exec, a prostitute, and heroin<\/a>.\u00a0 The much hoopla-ed glasses have fizzled<\/a>.\u00a0\u00a0 Let’s not forget the Supreme Court’s ruling against Aereo saying you cannot take copyrighted material which is available for “free” in one form and “change its form as a service to the public” without express permission of the copyright holder.\u00a0 This means that long drawn out copyright infringement case of biblical proportions where Google scanned books from a library and made them available on-line to sell advertising around them without permission from the copyright holder is really going to bite them now.\u00a0 The documentary covering Google’s ills will have to be turned into a miniseries if it intends to cover everything.\u00a0 Ethics matter.\u00a0 Perhaps Google executives can use DuckDuckGo<\/a> to search and find out what ethics are?<\/p>\n

Of course, we cannot forget all of the stories in the news about major corporations creating business units without a country of origin to avoid taxes<\/a> or the more widely circulated “double Irish<\/a>” stories.\u00a0 These stories are going to get more traction from international markets in 2015.\u00a0 I expect the Republican party will attempt to re-introduce massive tax loopholes for their corporate owners in 2015, but the rest of the world is hot on the trail so the major corporations will find no shelters in 2015.\u00a0 Ethics matter.\u00a0 Maybe you can buy a candidate which has them?\u00a0 Oh wait, if they sold their soul to a corporation that means they no longer have any . . .<\/p>\n

This all brings us back to McDonalds.\u00a0 Few things are more Norman Rockwell type Americana than the small town burger joint of the 1950s.\u00a0 It was a local business which gave a few kids jobs and provided a safe place for kids and families to hang out.\u00a0 The owners were pillars of the community.\u00a0 Despite what the dieticians say, it was wholesome and good in the minds of those who eat animal products.\u00a0 Today McDonalds is a multi-national corporation.\u00a0 In the minds of an ethics conscious culture it is a corporation built on the backs of McJobs<\/a> which pay McWages<\/a>.\u00a0 I believe McDonalds even got some note in “Food, Inc.<\/a>“<\/p>\n

What happened to McDonalds has nothing to do with the menu or a healthier eating America.\u00a0 Other burger joints have increasing sales.\u00a0 People like to eat what they like to eat.\u00a0 That will not change.\u00a0 If we all ate healthy we would never know happiness, at least that is what we believe, especially since we are never happy when forced to eat healthy.\u00a0 What happened to McDonalds is that a large section of consumers now believe the company has perverted Norman Rockwell Americana.\u00a0 To them, that is unforgivable.<\/p>\n

“Rational Self Interest” is not a legitimate philosophy, business or otherwise.\u00a0 In general it is a philosophy followed by prison inmates, at least followed before they ended up in prison.<\/p>\n

Despite what the press claims, for the people unemployed or holding down McJobs, there is no recovery.\u00a0 The economy is still tanked and their outlook is not improving.\u00a0 The upper 1% is getting richer, but the other 99% are getting poorer.\u00a0 America is all about the come from nothing and build a success story.\u00a0 In the minds of the general public McDonalds has gotten associated with “take those who come from nothing and keep them there.”\u00a0 This “living wage” issue isn’t going away and won’t in a globally tanked economy.\u00a0 It can’t.\u00a0 The global economy cannot actually turn around until people earn a living wage.\u00a0 No matter what Wall Street or the Republican party tells you, this is the simple truth.\u00a0 The middle class on down are the ones who actually pay the taxes which get the country out of debt.\u00a0 They cannot be taxed on income they don’t have.\u00a0 Just about everyone in the world, except a handful of leaders in the Republican party, has figured this out.<\/p>\n

Short term the only “fix” for McDonalds is a totally free four (4) year degree from a real college.\u00a0 Not just 100% on-line, but physical classroom time too.\u00a0 Americans understand “paying your dues.”\u00a0 An awful lot of Americans join the military just to go to college.\u00a0 If McDonalds becomes the puts 100% of its McJob employees through college for free, it can be loved again.<\/p>\n

Know this.\u00a0 Some fast food chain will<\/em> do it.\u00a0 Paying $12 for a drive through meal is tough to justify.\u00a0 Paying $12 for a drive through meal which helps put kids through college, perhaps even your<\/em> kids, is not.<\/p>\n","protected":false},"excerpt":{"rendered":"

There has been a lot of chatter about the financial situation at McDonalds (MCD) lately.\u00a0 All kind of chatter about revamping the menu, loss of market share, allowing more local store independence, etc.\u00a0 All of it is wrong.\u00a0 All of it is focused on the typical MBA thought process of “How can we change nothing and start making money again?”\u00a0 This process never works.\u00a0 It is based on the luck of some temporary downturn which … McDonalds Problem is Not the Menu<\/span>Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[651,205,873,878,877,876,875,874,240,869,144,871,870,96,145,872],"class_list":["post-1418","post","type-post","status-publish","format-standard","hentry","category-investing","tag-aereo","tag-amazon-com","tag-amnz","tag-college-degree","tag-corporations-without-country-of-origin","tag-double-irish","tag-duckduckgo","tag-goog","tag-google","tag-mcd","tag-mcdonalds","tag-sbux","tag-starbucks","tag-taxes","tag-wal-mart","tag-wmt","bnm-entry"],"yoast_head":"\nMcDonalds Problem is Not the Menu – Logikal Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.logikalsolutions.com\/wordpress\/investing\/mcdonalds-problem-is-not-the-menu\/\" \/>\n<meta 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