Tuesday, November 4, 2014

Russia Takes The Fat Out Of Mcdonalds, As Anti-American Retaliation Endorsed By Half The Population | Dances With Bears

By John Helmer, Moscow

It is easier to know what’s inside a McDonald’s hamburger than inside the corporation’s financial accounts. That’s because the type font on the internet version of the corporation’s financial reports is so small, a magnifying-glass is required at the computer screen to decipher the text; even then computer programming by McDonald’s prevents copying the text. But a magnifying-glass cannot uncover the current financial condition of McDonald’s in Russia. Those numbers are entirely hidden, and McDonald’s spokesmen refuse to say what the company’s Russian sales revenues are, and how fast they are falling.

For this reason, it’s not possible to estimate the financial damage the corporation will suffer if the Russian government closes down a large fraction of the McDonald’s outlets currently under investigation by the public health authorities. As for the McDonald’s claim that the trouble the restaurant chain is in Russia risks no more than 1 US cent per share, or $9.8 million, that’s a lie. In the circumstances, a fat lie.

A press release issued by McDonalds from its Illinois headquarters on October 21 reported “a significant decline” in worldwide revenues for the third quarter, as well as falls in operating income, bottom-line profit, and earnings per share. This is how the press release tabulated the decline globally for the corporation:

Without giving precise figures, McDonald’s says its third-quarter comparable sales in Europe declined 1.4%, and its operating income in Europe decreased 2% . The company admits that “consumer confidence and other issues related to the operating environment in Russia and Ukraine and ongoing weakness in Germany negatively impacted the segment’s quarterly results”.

Complete story at - Russia Takes The Fat Out Of Mcdonalds, As Anti-American Retaliation Endorsed By Half The Population | Dances With Bears

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