Fox Blames Non-Existent Wage Hike for McDonalds’ Losses

McDonald’s just reported a huge drop in quarterly profits, about 30%, and Fox News knows exactly what caused it: That big increase in the minimum wage that, you know, doesn’t fucking exist. Apparently on Planet Wingnuttia, cause and effect are reversed and the effect can exist without the cause existing. And of course, this is coming from the two dumbest men on television.

STEVE DOOCY: Meanwhile, McDonald’s, the Golden Arches, reporting a 30 percent drop in corporate profits.

BRIAN KILMEADE: Why? Well, it turns out workers’ wages might be to blame.

[…]

BARTIROMO: Well, the issue really is, this is the implication of raising the minimum wage for certain companies. I mean, something’s got to give. The money comes from somewhere. At some point, a company will say, “OK, we have a higher expense rate because we are raising the minimum wage we’ve got to do something somewhere else.” In this case, they are going to automation. They are changing certain jobs to computers.

[…]

AINSLEY EARHARDT: So it’s really biting them in the tail. They were complaining, saying “we want more money,” and as a result, McDonald’s saying,”Hey, we’re going to lose some of you guys, and we’re going to replace you with machines.

Makes perfect sense.

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  • Al Dente

    According to Bloomberg:

    McDonald’s has been struggling to draw American diners as rivals offer deals and introduce new items. The company also has lost customers by boosting prices on burgers to make up for rising labor and ingredient costs. Sales at McDonald’s U.S. stores open at least 13 months fell 3.3 percent in the third quarter, trailing the 2.9 percent decline estimated by analysts in a Consensus Metrix survey.

    While labor costs are a factor, the price increases for beef are likely to have a greater effect on Micky D’s profits.

  • kevinalexander

    I worked for thirty years in the auto industry and every time someone got sticker shock they blamed me for it. The labour cost is one of the smallest parts of the car. Even the grinning idiot who shook your hand at the dealer got more than all of the workers put together yet somehow we have been conditioned to believe that the workers are the enemy.

  • Michael Heath

    If increased labor costs were the reason McDonald’s profits went down, that’d correlate to their competitors as well. Not perfectly of course given varying rates of productivity, but we would see a correlation.

    Another explanation could be that we’re getting this from whom Ed describes as, the two dumbest men on television. Like Ed, I’ll go with the latter.

  • John Pieret

    It just so happened that they had McDonald’s CEO on CBS Sunday Morning today (can be watched on Smithsonian Channel this afternoon). He didn’t blame the company’s problems on the minimum wage (he’ll support a raise in it if it is done gradually) but on competition from other fast food companies … you know, capitalism. CBS also noted that surveys put MickyD’s hamburgers at the bottom of all fast food joints as to taste.

    Bad product, better competition … the American dream!

  • D. C. Sessions

    Bad product, better competition … the American dream!

    No wonder Fox hates it.

  • hunter

    ”Hey, we’re going to lose some of you guys, and we’re going to replace you with machines.”

    Well, it worked just fine at Fox News.

  • colnago80

    As the other commenters have noted, the Fascist News Channel morons don’t know their ass from a hole in the ground. I’m sure that these schmucks won”t comment on the interview with the McDonald’s CEO interview which is 180 degree at odds with their claims. It would not surprise me if the Murdock momsers are opposed to any minimum wage.

    By the way, I note that Maria Bartiromo, who used to be with CNBC, is now at the Fascist News Channel. Most folks would consider that several steps down, although CNBC, which boasts of the likes of cokehead Larry Kudlow, ain’t so hot either.

  • Trebuchet

    I’m sure that these schmucks won”t comment on the interview with the McDonald’s CEO interview…

    Well after all, he’s a “thug”…

  • http://www.decrepitoldfool.com georgewiman

    I eat at Noodles a couple days a week, and Chipotle a couple days too. The two restaurants are next door to each other, and there’s a McDonald’s across the street. I walk past the McDonald’s to get to the Chipotle and Noodles.

  • blf

    I assume — without checking — that there have been massive “wage” hikes at scarf & barf: For the executives. After all, profits and whatnot have been falling, so clearly they need to be “incentivated” to stop the decline. And then, with more “incentivation”, to resume the previous growth. For which they will be handsomely rewarded if they succeed, or given further bonuses and similar to keep their “expertise” if success is “yet to be achieved”.

  • sugarfrosted

    AINSLEY EARHARDT: So it’s really biting them in the tail. They were complaining, saying “we want more money,” and as a result, McDonald’s saying,”Hey, we’re going to lose some of you guys, and we’re going to replace you with machines.

    “We want more money” is the same as “we want a living wage.” Oh, and eliminating low skill labor jobs is totally going to end well. Capitalism in its current form likely cannot survive this. I’m glad Fox News is suggesting speeding this process a long.

    (A side note: This was suggested that this would happen during the introduction of some level of automatization to the manufacturing industry, but that never materialized. This was mostly due to the fact that the machines required constant attention, but in this case that wouldn’t happen.)

  • http://en.uncyclopedia.co/wiki/User:Modusoperandi Modusoperandi

    Al Dente “While labor costs are a factor, the price increases for beef are likely to have a greater effect on Micky D’s profits.”

    Exactly. Even cows are asking for more money! And you said there’d be no negative side to them forming a union!

     

    sugarfrosted “This was suggested that this would happen during the introduction of some level of automatization to the manufacturing industry, but that never materialized…”

    And thank goodness for that. Can you imagine lines of striking robot workers?

  • dingojack

    Modus – “Can you imagine lines of striking robot workers?”

    Yep.

    Dingo

  • dingojack

    They might be synthetic, but they’re not stupid.

    Dingo

  • D. C. Sessions

    Modus, this was foreseen a long, long time ago when cattle first started organizing. They call them “herds.” Instead of “striking,” though, they “stampede.”

    And you really, really don’t want to know what they do when they’re on break.

  • D. C. Sessions

    As the other commenters have noted, the Fascist News Channel morons don’t know their ass from a hole in the ground.

    What makes you so sure? Do you think they’d do any differently if they did?

  • otrame

    Walmart and Amazon are suffering, too. Big losses. It seems to me that the throttling of the middle class might very well have something to do with it.

    I know my family doesn’t eat out more than once a month. Can’t afford it. We avoid Amazon and Walmart because of their labor practices, though I am not above using the convenience of both at times. Still, the money that both get from my family has gone way down. We feed ourselves reasonably well, buy an occasional video game, keep the kids in decent clothes, and every once in a while can afford a bit of a goodie of some kind, but trips to McDonalds and buying at Amazon are outside our budget. I suppose it is true of many other families.

  • http://en.uncyclopedia.co/wiki/User:Modusoperandi Modusoperandi

    otrame, what you and your family (and America!) needs is a fresh round of tax cuts and deregulation.*

     

    * This advertorial provided by Trickle Down Economics.

  • http://en.uncyclopedia.co/wiki/User:Modusoperandi Modusoperandi

    And just think how much your family could save if you also had no-healthcare.*

     

    * This Advertorial provided by Retirees Against Moochers.

  • donkensler

    Turns out if you reduce wages to the point where your workers can’t afford your cheap-ass shit, and other companies do likewise, it’s bad for profits because nobody can afford your cheap-ass shit. Who knew? Turns out Henry Ford had this one sussed out a hundred years ago. Damned soshulist looter/moocher!

  • cry4turtles

    Mickey Deez workers should make as much as waste management employees. They both handle garbage!

  • anubisprime

    Fine demonstration of right wing financial understanding…what could possibly go wrong?

  • http://www.pandasthumb.org Area Man

    Assuming the premise were even true here, an equally correct and morally straight spin would be, “Good news America, wages at fast food restaurant McDonalds are going up thanks to lower profits!”

    Unless you’re a member of the plutocracy (or one of their courtiers), you should prefer that a greater share of MCD revenues end up in the hands of workers rather than shareholders. MCD is still perfectly profitable and isn’t going to collapse anytime soon; the shareholders aren’t the ones struggling; and we live in an age where corporate profits have surged while wages have stagnated. So, if true, this would be a welcome corrective.

  • dugglebogey

    There’s no way it was the minimum wage increase that didn’t happen. So obviously it’s gay marriage that’s to blame. Everyone can see that.