Why Mcdonald’S May Never Run Robots To Flip Burgers (Mcd)

A serious hold off at the golden arches.
From Nanalyze:

We pass the vast bulk of our waking hours trying to figure out the best agency to invest inward disruptive technologies, precisely that’s non where nosotros genuinely allocate the lion’s part of our investments. Instead, our hard-earned dollars tin live institute in boring industries similar insurance or consumer goods which are more probable to render predictable cash flows inward the cast of dividends that grow slow over time. It’s likely the “safest” agency we’ve seen to invest inward equities, provided that you lot diversify across industries in addition to agree a large plenty number of stocks for diversification. Additionally, nosotros similar to invest inward large multinational firms to avoid existence over-reliant on those crazy Yanks.

Speaking of which, 1 affair you’ll run into inward Yankee dry reason is a whole lot of overweight people. At to the lowest degree that’s what 1 of our Danish MBAs remarked every bit he experienced a McDonald’s (MCD) drive-through for the really start fourth dimension inward his life. In Denmark, they don’t stimulate got drive-throughs, in addition to they’re too crazy plenty to believe that large isn’t beautiful, it’s unhealthy. Kingdom of Denmark has a full of 88 McDonald’s outlets, less than 0.02% of the 37,404 full Mickey D’s restaurants that tin live institute occupying around of the most prime number existent estate inward 120 countries around the world. All those restaurants stimulate got collectively helped McDonald’s pay dividends every unmarried yr for 42 years, each yr to a greater extent than than the last. So how tin McDonald’s conk on to grow those payments moving forward? Well, they tin growth sales or decrease costs.

Increasing Sales or Decreasing Costs?
When it comes to increasing sales, that mightiness come upwards from entering novel markets similar Kenya, existence to a greater extent than clever amongst advertising spend, or developing novel nutrient products to growth sales (think all twenty-four hours breakfasts). When it comes to decreasing costs, the biggest smasher for the buck appears to live reducing labor costs. At to the lowest degree that’s the illustration for franchised McDonald’s restaurants where labor is the biggest expense at 24% of cyberspace sales:

McDonald’s Franchise Income Statement

The to a higher house numbers were taken from a theater called Janney Capital markets, in addition to nosotros can’t confirm the accuracy of the information nor the engagement it was published. Still, let’s assume employing humans amounts to 24% of costs. Then, add together to that the whole minimum wage combat virtually paying workers $15 an hour, something that a previous McDonald’s executive said would number inward “a labor loss similar you lot can’t believe“. This, of course, led to some rumors that McDonald’s may decrease costs past times adopting the type of robotics engineering nosotros talked virtually earlier inward our article on A High-Tech Burger Joint of the Future:...

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