McDonalds DEEP DEEP DEEP in debt shuts corporate offices, announces layoffs coming

McDonalds is DEEP DEEP DEEP in debt
Tangible book value
12/31/2021 … -7.4b
12/31/2022 … -8.9b

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Let’s go Brandon.

Another victim of pandemic response.

More likely inflation response. Have you seen the prices lately? Add to that people having to make hard choices when household income gets tight. $40 for fast food is going to be one of the first cuts

What does this have to do with covid or Brandon?

I don’t think slammering shut the corporate offices just before a layoff announcement is the normal way to do a layoff announcement.

Has anyone ever heard of this before?

BTW apparently they don’t own most of their stores.
Apparently they do “sale and leaseback” which is a common way of financing retail and restaurants. They have almost $13b in lease obligations.

(Maybe I am reading the numbers wrong. This is just a first impression.)

Disruption to eating out.

COVID cash inflation.

Hit small operators quicker. Now the big players are feeling the pain.

Biden ■■■■ economy.

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McDonald’s has way ups and way downs since I worked for them in high school in the last century. They always come out ok.

My thought to that was, since covid, corps now have the ability to have corporate workers “work from home” whenever they want. Which they probably want for announcing job losses.

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They are making a profit of $6b a year.

That is teensy compared to their stock price.
but it may not be enough to meet their upcoming debt payments.

BTW a quick search reveals this:


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Insiders, who know the business keep selling the stock.
Retail traders, who buy every household name keep buying it until their money runs out.

This economy is horrible and now we have an internet full of videos discouraging people from going there because a patron has a meltdown over extra sauce.

Lovin’ it.

Cutting corporate fat to accelerate building more stores doesn’t really feel like a struggling company in a terrible economy.
“McDonald’s is planning job cuts and a reorganization as the company refocuses its priorities to accelerate restaurant expansion, CEO Chris Kempczinski told employees Friday.”

"Additionally, McDonald’s said Friday it will speed up its development plans for new restaurants.

“We must accelerate the pace of our restaurant openings to fully capture the increased demand we’ve driven over the past few years,” Kempczinski said in the memo."

It seems like a very unusual way to layoff workers. Don’t you think?
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Oh and then there is this:

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Unusual in that until covid corporations didn’t have the tech to have corporate workers “work from home” to get their pink slip. It’s no doubt much easier to hand out firings this way.

McDonald’s announced in January 2023 that firings were going to occur in April 2023 so it’s not news to employees.

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I suppose the laid off corp employees could go get jobs at the rapidly expanding stores :laughing:

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I don’t think they are going out of business and shutting all their restaurant if that is what you are inferring

I think it is a pretty severe way to handle a layoff and their problems (probably a balance sheet surprise) will prove to be at least as severe.

No of course not. I posted where they are rapidly accelerating opening new stores.

It’s corporate employees getting the boot via “working from home”.

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Given that McD’s is mostly franchised, whatever this is only hits corporate employees.

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Yeah but franchisees aren’t always mom and pop.

ONE corporation owns 20% (1-in-5) McDs worldwide

I can only guess how the rest are divided up.

But this article references only McDonald’s Corp, not the franchises or their offices, correct?

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Yes…