McDonalds Blames Wage Campaigns For Potential Profit Loss

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McDonald’s is projecting that it may lose some profits in the near future as patrons are realizing its wrong for fast food chains to not offer a living wage to its workers, according to a filing the company made with the SEC.

According to Al Jazeera America,

“Along with sorting out how it will continue its popular dollar menu, the cheapest eats on offer at the chain restaurant, McDonald’s wrote in a filing with the Securities and Exchange Commission that “the impact of (wage) campaigns by labor organizations and activists, including through the use of social media and other communications and applications,” could pose a threat to the global fast-food brand.

An area of concern for the company is increasing calls for wage hikes in “mature markets.” McDonald’s says it cannot “offset” increased labor costs “through price increases” to keep pace with the “long-term trend toward higher wages and social expenses in both mature and developing markets.”

“The company added that these costs ‘“may intensify with increasing public focus on matters of income inequality.’”

‘“The SEC requires McDonald’s as a publicly-traded company to make certain disclosures to our shareholders regarding possible circumstances or events — whether in or out of our control — which may impact our future business performance,’” the company said in a statement.”  Read more here.

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