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KJP712
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Trade in my own account and owner of KJP Enterprises.Also Trade stocks for Family and friends.
  • McDonald's Closes Three Restaurants In Russia 1 comment
    Apr 5, 2014 7:04 PM | about stocks: MCD

    On a Saturday morning while doing the regular weekly shopping,my daughter commented on how long ago was the last McDonald's visit.Early on we told her that the trips would be rare since her mother is a great cook who dislikes most restaurants.So time allowed for a rare journey inside the famous place.It had been probably two years since the last inside visit and the establishment was renovated very nice.I wanted to try the coffee and my daughter had her eyes on a new pony toy in a Happy Meal.My Wife ordered a coffee as well and gave a good opinion on the new decor.Where we sat I noticed a T.V. adding a new touch to the ambiance.The Television was tuned to CNN with a report that the search was still on for the missing plane.Across the bottom scrolled a report that McDonald's closed 3 restaurants in the Crimea.I thought it ironic that the news flashed at the same time I was in the restaurant.At first the news made little difference as McDonald's - MCD - has around 34,000 structures worldwide.But then I remembered that they had about 400 in Russia total.What would happen if Russia retaliated and ordered their business inspectors to close the rest.It might seem insignificant at this moment but it could catch on in other places all around the world.Big events can start with small disruptions that are barely noticed at first.This may or might not turn into a big deal but a close watch is warranted.Less Happy Meals in Russia means less profits in America.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: MCD
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    With only 400 restaurants in Russia out of 32,000 worldwide, I don't think McDonald's is going to be hurting too much. What's really hurting McDonald's is the low wage battle they're fighting with their employees. They're going to be forced to increase labor costs in the near future, which is going to do the most damage.
    7 Apr, 08:48 AM Reply Like
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