Photo: By Scorpions and Centaurs on Flickr
Retailers and restaurants have made a big deal about Obamacare,National Restaurant Association CEO Dawn Sweeney even went so far to say that Obamacare may “threaten their very business” because of the cost pressures involved.
But for fast food titan McDonald’s, Obamacare is no worse than a swing in commodity costs.
McDonald’s is exposed to big cost pressures every year from factors that it can’t control, and despite that, it always seems to power through and maintain its dominance.
Here’s what a McDonald’s representative had to say about the Obamacare changes that may hit in 2014 in the company’s Q2 earnings call this morning:
“Our current estimate is healthcare is going to impact, in each individual restaurant, in the range of $10,000 to $30,000.
“I will tell you that we are significantly increasing now that the Supreme Court has ruled increasing our conversation and disclosures with franchisees around what does this mean for brand McDonald’s. So that they can be as educated as possible around what’s happening, so that they can start to anticipate and make any changes if they have to try to minimize the impact of this.
“On just a dollar basis that $10,000 to $30,000, we have the years like last year where commodity cost increases were even greater than that. So while it is a significant item and it’s gaining a lot of attention as the [profit and loss] item we have managed through items of this magnitude in the past. and I’m hopeful we can do that in future.”
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