I don’t mean to keep picking on McDonald’s, but they just make it so darn easy!
[via YAHOO! news]
McDonald’s posts sizzling 80% profit rise in 2008
US fast-food giant McDonald’s said Monday its 2008 net profit soared 80 percent from a year [ago], lifted by growing demand from consumers seeking low-cost meals in a deepening global recession.
Net profit for the full year totaled 4.3 billion dollars, compared with 2.3 billion in 2007, the Oak Brook, Illinois-based company said in a statement.
The robust annual results came despite a sharp 23 percent decline in fourth-quarter net profit to 985 million dollars, from 1.273 billion in the 2007 fourth quarter.
WHOA! So, even though 4th quarter profits were way lower than the previous year, the overall yearly profits were still 80% higher!! I guess the last time I talked about McD’s profits proved to be part of the best year yet for the chain.
Realize, though, that their PROFITS rose 80%. This includes an average global sales increase of 6.9%, with the biggest increase in the asian market. What does this tell us? How can a respectable 6.9% sales increase equate to an 80% increase in profits? Well, I’m no business man, so I could be missing some not so obvious reasons here, but I would guess that some reasons could be:
- Their food is being made cheaper, with cheaper labor.
- Customers are buying the menu items that have a larger profit margin.
- Their number of locations are increasing fast enough to boost their bottom line heavily.
Like I said, I’m sure there are other reasons their profits rose so much, but it is interesting that they seem to be recession proof, especially with energy costs being so high the past year.
Like I’ve said before, I don’t place any blame on the junk food providers… I only blame people that choose to eat this crap regularly, and then don’t understand why they’re fat or unhealthy.
They like to make excuses that it’s easier to eat fast food, or it’s cheaper than cooking real food. While it’s certainly easier, I call BS on any other excuse.