I find it hard to believe McDonald's was losing money on the dollar menu items. Considering they owned the entire process from factory, shipping, to restaurant. Back in the 90's even I know the fountain drinks alone were insanely profitable.

[–] [email protected] 2 points 8 months ago (4 children)

They might not “lose money” per McChicken sold but if they’re not gaining a certain dollar amount per hour/week/month/etc that particular McDonalds restaurant might lose money over time.

Take two burger places, one of them makes 20 cents on every burger, while the other makes a dollar and 20 cents on every burger. Even if the latter one gets a bit less traffic it’s absolutely going to out perform the former.

This can suck but… if can also be the reality of the situation. A sandwich (even a small one) being a single dollar is likely way below McDonalds usual margin, and unless you’re demanding an immediate People’s Revolution of fast food restaurants they’re going to run the numbers and make the most profitable locations they can.

[–] CaptPretentious 3 points 8 months ago (3 children)

I mean, I worked there. I was there when the beany baby craze was in full effect. The profit margins even back then were huge since they control the entire supply line. Never thought I'd see the day people come out to be apologists for McDonalds.

Their revenue from 2002 when they introduced the dollar menu meal was $15.40 B. Then climbed to 20 billion by 2005 and has bounced between 20 to 28 billion every year since except for 2020 where they dipped to 19 billion. They are far ahead of https://companiesmarketcap.com/mcdonald/revenue/ https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profit

Why I'm getting downvoted because a video (that wasn't linked) had someone talking about a Yum! branded company (Taco Bell) whos profits tanked in 2016 (from $13B to $1.89B) mentioned McDonalds... who's not seen any sort of comparable problems as based on the links I provided... is beyond me.

[–] Cerise_W 1 points 8 months ago* (last edited 8 months ago) (1 children)

Sorry, I think this is the video https://youtu.be/WKh85_81US0

Interestingly, taco bells lower performance gave them more freedom

[–] [email protected] 1 points 8 months ago

Here is an alternative Piped link(s):

https://piped.video/WKh85_81US0

Piped is a privacy-respecting open-source alternative frontend to YouTube.

I'm open-source; check me out at GitHub.

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