S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Investing

Unions Chase McDonalds Around China

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The unions are putting the strong arm on McDonalds (MCD) in China. The company will allow a state-controlled union to organize in 750 or its stores. Wal-Mart (WMT) has already been through the process.

McDonalds has been accused of paying below minimum wage at some of its stores in China, but it is not yet clear that this is true.

The Chinese government is probably up to no good at both Wal-Mart and McDonalds. Once large US companies have established a foot print in China, the revenue from the huge, fast-growing country begins to show up on P&Ls and warms investors’ hearts. But, the need to operate in China give the government the chance to observe successful US business practices and push for policies that may help the communist party and its local members.

But, what helps the government is likely to squeeze margins. And, that makes Chinese revenue less attractive for US companies.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Yum! Brands and the Dangers of Doing Business in China

courtesy of KFCYum! Brands Inc. (NYSE: YUM) is not the first American company to stumble badly in China. It will…
McDonald’s to Add 1,500 Locations in Asia Over 5 Years
Douglas A. McIntyre |

McDonald’s to Add 1,500 Locations in Asia Over 5 Years

McDonald's will chase other American companies more deeply into Asian markets on the gamble that it can accelerate global growth…
Douglas A. McIntyre |

McDonald’s (MCD) Joins The Communist Party

McDonald’s has succumbed to pressure from Chinese groups and will raise its wages in that country. It will also gets…
Douglas A. McIntyre |

Wal-Mart (WMT): India A China Foil

First, Wal-Mart (WMT) announced a joint venture with India retailer Bharti Enterprises to begin opening stores in India. But, that…
Jon C. Ogg |

Wal-Mart Takes Its Chances in South Africa (WMT)

Just two months ago Wal-Mart Stores, Inc. (NYSE: WMT) revealed that it had made a non-binding offer of $4.6 billion…
Douglas A. McIntyre |

As Growth Dries Up In US, Home Depot Truns To China

stocks:  (HD)(WMT) After Wal-Mart’s succesful move into China, it was to be expected that other large US retailers would see…
Paul Ausick |

McDonald’s and Yum! Halt Purchases From Meat Supplier

Chinese regulators have closed down a local meat supplier following a TV report that the company was mixing meat that…
247alex |

15 Biggest Employers in the World

courtesy of Wal-Mart Stores Inc.Wal-Mart Stores (NYSE: WMT) is the world’s largest publicly traded employer, with approximately 2.2 million employees…
Douglas A. McIntyre |

Wal-Mart (WMT) Learns China’s Hard Lesson

When the Chinese government pushed its retail union into Wal-Mart (WMT) two years ago, the world’s largest retailer should have…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618