Row 51113

Row ID: 51113 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 51113 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

>Why did Subway only raise prices 39% while McDonalds “needed” to raise prices by 100%? McDonald’s has more locations and sells more volume. They should have the advantage and be able to undersell their competitors.

Can you honestly say that McDonald’s and Subway are competing for the same target audience. One group is far more (to the extent that you can be) health conscience than the other. I mean, you couldn't have picked more polar opposites within the same industry. Whats next? Payless vs Balenciaga?lol

Secondly, unless profit margin percentages ALSO increased by 100% over the same period, it's probably mostly related to the increasing cost of supply and declining availability of supply inputs.

Illustration:

1. 100 revenue (prices) - 80 cost = 20 profit

Profit Margin = 20/100 = 20%

2. If I double prices due to increased input costs to facilitate greater pressures on supply due to increased demand:

200 - 160 = 40 profit

Profit Margin = 40/200 = 20%

Higher prices doesnt necessarily mean more greed even if it means even "higher" profits (look at the math, not your feelings). However, if you can supply evidence that McDonald’s had a situation like the following then you'll have a solid point:

100-60= 40 profit

Profit Margin = 40/100 = 40% = double the profit margins of 20% = 100% Higher profit margins

Edit: McDonald’s is a publicly traded company, so their financial statements are free and available to the general public going back years if not decades. Find out if their profit margins also doubled from the base year of comparison to the present (2023 or 2024).

FieldValue
text >Why did Subway only raise prices 39% while McDonalds “needed” to raise prices by 100%? McDonald’s has more locations and sells more volume. They should have the advantage and be able to undersell their competitors. Can you honestly say that McDonald’s and Subway are competing for the same target audience. One group is far more (to the extent that you can be) health conscience than the other. I mean, you couldn't have picked more polar opposites within the same industry. Whats next? Payless vs…
label r/economics
dataType comment
communityName r/Economics
datetime 2024-05-22
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Raw Record

{
  "text": ">Why did Subway only raise prices 39% while McDonalds “needed” to raise prices by 100%? McDonald’s has more locations and sells more volume. They should have the advantage and be able to undersell their competitors. \n\nCan you honestly say that McDonald’s and Subway are competing for the same target audience. One group is far more (to the extent that you can be) health conscience than the other. I mean, you couldn't have picked more polar opposites within the same industry. Whats next? Payless vs Balenciaga?lol\n\nSecondly, unless profit margin percentages ALSO increased by 100% over the same period, it's probably mostly related to the increasing cost of supply and declining availability of supply inputs.\n\n Illustration:\n\n1. 100 revenue (prices) - 80 cost = 20 profit\n\nProfit Margin = 20/100 = 20%\n\n2. If I double prices due to increased input costs to facilitate greater pressures on supply due to increased demand:\n\n200 - 160 = 40 profit \n\nProfit Margin = 40/200 = 20%\n\n\n\nHigher prices doesnt necessarily mean more greed even if it means even \"higher\" profits (look at the math, not your feelings). However, if you can supply evidence that McDonald’s had a situation like the following then you'll have a solid point:\n\n100-60= 40 profit\n\nProfit Margin = 40/100 = 40% = double the profit margins of 20% = 100% Higher profit margins\n\nEdit: McDonald’s is a publicly traded company, so their financial statements are free and available to the general public going back years if not decades. Find out if their profit margins also doubled from the base year of comparison to the present (2023 or 2024).",
  "label": "r/economics",
  "dataType": "comment",
  "communityName": "r/Economics",
  "datetime": "2024-05-22",
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}
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