Maybe Iceland is not so bad after all

[cjppjc]

http://finance.yahoo.com/news/Icelan....html?x=0&.v=6

Iceland says goodbye to the Big Mac

McDonald's closes in Iceland as currency collapse takes a bite out of Big Mac profits

• By Gudjon Helgason and Jane Wardell, Associated Press Writers
• On 3:41 pm EDT, Monday October 26, 2009

REYKJAVIK, Iceland (AP) -- The Big Mac, long a symbol of globalization, has become the latest victim of this tiny island nation's overexposure to the world financial crisis.
Iceland's three McDonald's restaurants -- all in the capital Reykjavik -- will close next weekend, as the franchise owner gives in to falling profits caused by the collapse in the Icelandic krona.

[Ghent12]

Re: Maybe Iceland is not so bad after all

This will remove Iceland altogether from the Big Mac index! Now who knows how long an average Icelander will have to work in order to earn a Big Mac?

Also, one thing about the article...
How does McDonald's operate in "more than 119 countries" exactly? Why even use that phrase at all, in lieu of the exact number? Does it operate in non-countries?

[santafe2]

Re: Maybe Iceland is not so bad after all

http://finance.yahoo.com/news/Icelan....html?x=0&.v=6

Iceland says goodbye to the Big Mac

McDonald's closes in Iceland as currency collapse takes a bite out of Big Mac profits

• By Gudjon Helgason and Jane Wardell, Associated Press Writers
• On 3:41 pm EDT, Monday October 26, 2009

REYKJAVIK, Iceland (AP) -- The Big Mac, long a symbol of globalization, has become the latest victim of this tiny island nation's overexposure to the world financial crisis.
Iceland's three McDonald's restaurants -- all in the capital Reykjavik -- will close next weekend, as the franchise owner gives in to falling profits caused by the collapse in the Icelandic krona.

It appears that American corporate icons are not the draw they were before 2007. A friend of mine runs a hedge fund and when we were talking the other day he said that a few years ago he'd be in a meeting in Hong Kong, Vietnam or Korea and his host would serve Coke and other Western beverages. Today, more often than not, local drinks are served.

The change seems to be a small one but he's concerned that this crack is only one of many in US hegemony.

[blazespinnaker]

Re: Maybe Iceland is not so bad after all

He's concerned that they're not serving coke in overseas meetings? Yikes.

Anyways, I have noticed a lot of green tea products around lately. It only makes sense that we use the best of all worlds.

[touchring]

Re: Maybe Iceland is not so bad after all

It appears that American corporate icons are not the draw they were before 2007. A friend of mine runs a hedge fund and when we were talking the other day he said that a few years ago he'd be in a meeting in Hong Kong, Vietnam or Korea and his host would serve Coke and other Western beverages. Today, more often than not, local drinks are served.

The change seems to be a small one but he's concerned that this crack is only one of many in US hegemony.

In recent years, Asian consumers are trending towards all things Korean and Japanese. Korean series, Japanese food, Japanese fashion, cartoons, animation. American food and soda are considered unhealthy and no longer fashionable.

[Andreuccio]

Re: Maybe Iceland is not so bad after all

Also, one thing about the article...
How does McDonald's operate in "more than 119 countries" exactly? Why even use that phrase at all, in lieu of the exact number? Does it operate in non-countries?

With a little over 100 billion hamburgers served, maybe the phrasing is just force of habit.

BTW, the McDonalds website already reflects the loss of Iceland:

1. How many restaurants does McDonald’s have?

We have more than 31,000 restaurants around the world in 118 countries.

http://www.aboutmcdonalds.com/mcd/st...udents.html#10

[goadam1]

Re: Maybe Iceland is not so bad after all

In recent years, Asian consumers are trending towards all things Korean and Japanese. Korean series, Japanese food, Japanese fashion, cartoons, animation. American food and soda are considered unhealthy and no longer fashionable.

Well, all you need to do is take a look at:

http://www.peopleofwalmart.com/

I think this is the last word on America. It borders on cruel. But a picture is a thousand words.

[swgprop]

Re: Maybe Iceland is not so bad after all

Well, all you need to do is take a look at:

http://www.peopleofwalmart.com/

I think this is the last word on America. It borders on cruel. But a picture is a thousand words.

And you can largely thank this flawed model:



for this epidemic in America:

[goadam1]

Re: Maybe Iceland is not so bad after all

And you can largely thank this flawed model:



for this epidemic in America:

I think we have discussed around here that obesity is a sign of how poor people are rather than the "old fat lord of the manor" good, old days fat. Refined sugar, starches, fast food and processed food are cheap. Factor in two working parents who don't have time to shop for fresh food and cook it and Blammo!.

Tragic.

[a warren]

Re: Maybe Iceland is not so bad after all

McDonalds does not have any restaurants. They are not restaurants.

[GRG55]

Re: Maybe Iceland is not so bad after all

I think we have discussed around here that obesity is a sign of how poor people are rather than the "old fat lord of the manor" good, old days fat. Refined sugar, starches, fast food and processed food are cheap. Factor in two working parents who don't have time to shop for fresh food and cook it and Blammo!.

Tragic.

It's not politically correct to point the finger at one of the major causes of this situation, but it's a common thread that runs through many aspects of this crisis, and EJ has touched on it at least once that I can recall...it's no longer acceptable to teach subjects such as Home Economics in schools any longer.

It's not just that two working parents don't have time to shop for fresh food...in far, far too many cases neither of them knows how to prepare a meal from scratch using fresh ingredients.

I don't know what we teach in the public high schools any more, but I've had several occasions where the young supermarket checkout clerk [at my advanced age, everybody seems young ] had to ask me the name of apparently exotic [to them] vegetables...aubergine, radishes, it's happened a number of times...before they could ring it up.

Home Ec used to teach more than meal preparation. Families no longer learn the basics of nutrition, budgeting, [no wonder we've got so many overindebted], and a host of other basic life skills needed to run the family enterprise successfully.

But as I said, it's not politically correct in this age of "empowering kids" to speak of such things.

[GRG55]

Re: Maybe Iceland is not so bad after all

In recent years, Asian consumers are trending towards all things Korean and Japanese. Korean series, Japanese food, Japanese fashion, cartoons, animation. American food and soda are considered unhealthy and no longer fashionable.

McDonalds does not have any restaurants. They are not restaurants.

"Good" or "bad", I wouldn't be too hasty to write off America's iconic brands... :p

An excerpt from McDonald's recently released 3rd Q earnings statement.

McDonald's Third Quarter Earnings Rise on Strong Global Results

OAK BROOK, Ill., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- McDonald's Corporation today announced strong results for the third quarter ended September 30, 2009, fueled by positive comparable sales in every area of the world. In constant currencies, the Company posted higher revenues, operating income and earnings per share compared with the prior year... ...Global comparable sales increased 3.8% with the U.S. up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%... ...Earnings per share of $1.15, a 10% increase (14% in constant currencies) over the prior year... ...In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21% in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA. Jim Skinner [McDonald's Chief Executive Officer] concluded, "We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our System and our shareholders. For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."... That last sentence is worth paying attention to. It means that in a declining global market, McDonald's is taking market share away from its competitors. Many years ago, in my former life in Big Oil, I had the opportunity to listen to executives from numerous other companies in other sectors of the economy come to our management sessions and discuss their businesses and strategies. One of the most insightful and useful discussions was with a McDonald's executive from Oak Brook who left me with a crystal clear understanding of their formidable competitive advantages and how they were applying them outside the USA to grow their international businesses. He showed us exactly how in an expanding market, McDonald's would grow faster than any other competitor, and in slow economic times how his firm would take market share from others. What he described then is precisely what the company has done in the intervening 15-odd years. I rarely frequent a McDonald's restaurant as I do not prefer fried foods, but anyone judging the quality of their business model using his/her taste buds is making a big mistake...

[touchring]

Re: Maybe Iceland is not so bad after all

[quote=GRG55;130546]"Good" or "bad", I wouldn't be too hasty to write off America's iconic brands... :p

An excerpt from McDonald's recently released 3rd Q earnings statement.

/quote]


McDonald's doing very well in China. But with time, maybe another 10-15 years, the novelty effect will wear off, and people will start to move onto Italian and Japanese food.

[Thailandnotes]

Re: Maybe Iceland is not so bad after all

[QUOTE=GRG55;130543]I had to ask me the name of apparently exotic [to them] vegetables...aubergine, radishes, it's happened a number of times...before they could ring it up. QUOTE]

I have lived in the same small city in Thailand for 14 years. Like most, I love Thai food.
Breakfast is a sassy rice soup with garlic and ginger. Fruit markets and vendors are everywhere. Lunch is a light, shared meal, more vegetable than carbo or meat.

But, about two years ago, the English newspaper here publish a short article with the headline… “111th 7-11 Opens.” There is a convenience store every half block. 7-11’s, Family Marts, and many other rival chains. Chips, sodas, and candy!

I live at the end of a dead-end street. At the other end is a school and a temple. Every morning I sit at the light waiting to turn on to the main road. The number of obese kids used to be zero. Now, they’re easy to spot. YUMS is making a killing in Asia.

You can go to the market and buy the most beautiful fresh stuff direct from the people who grew it or caught it, but you have a hard time bumping into people under 25.

They are going to miss it when it’s gone.

[lurker]

Re: Maybe Iceland is not so bad after all

I think we have discussed around here that obesity is a sign of how poor people are rather than the "old fat lord of the manor" good, old days fat. Refined sugar, starches, fast food and processed food are cheap. Factor in two working parents who don't have time to shop for fresh food and cook it and Blammo!.

Tragic.

I think the greater cause is lack of exercise. We have successfully engineered a society in which you have to go out of your way to expend any energy between waking and going to bed.

Pointing a finger at the food pyramid is bogus IMO. We need to walk, run, carry more. Perhaps if oil prices continue their trend this will happen.

There's a reason that you don't see many obese people in NYC and you see them everywhere in the mid-west. Sprawling suburbia where you are forced to drive everywhere is a guarantee of obesity.