Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation, Management Issues.

Description: If McDonald’s franchises follow the parent company – which recently hiked wages — and hike their own wages, some of them could soon be out of business. But before they close the door, they may lay-off many of their employees, who will end up paying for the wage hike.

Source: Forbes.com

Date: April 02, 2015

Link: http://www.forbes.com/sites/panosmourdoukoutas/2015/04/02/who-will-pay-for-mcdonalds-wage-hikes/

Questions for discussion:

  • What are the conflicting financial issues facing McDonald’s corporate and franchise operations?
  • What do you think the result will be of rising wages on franchise operators?
  • Is there a way to mitigate the financial strain on operations?

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