They should rebrand it to Chicken McDalios

teemupleb

The derivatives market serves a real purpose, beyond degenerates just speculating.

Though, hard to say how much of it is which these days.

SimpleStacker

Wow.  Crazy to me that McDonald's loyal customer base is that powerful.

Coz you'd think if people really liked more tomatoes on their burgers, they'd just go eat at a place that has more tomatoes on their burgers, and McDonalds introducing a new menu item wouldn't make that much of a difference.  But this implies that there are people who only eat more tomatoes if it's on the McDonalds menu.

wow, you had a McJob as a teenager and still managed to escape the cycle of poverty and corporate fast food?  amazing!

the invisible hand works!

I worked at McDonalds when the Mc DLT was launched in the 80s. It was the first mcdonalds burger to have tomatoes on it, the resulting surge in tomato consumption was so great that prices instantly started to shoot up.... US tomato prices rose so much they had to pause after a few months to let tomato prices stabilize. 

Incidentally I heard this is also reason why McRib only comes along every few years....they stockpile pork to curb a surge of demand. 

It highlights how difficult it can be for a very large fast food chain to rollout new menu items...

freetx

Early in his career, the Bridgewater founder was hired as a consultant to work with McDonald’s on pricing this new menu item. 

McDonald’s wanted price security to be able to generate a solid return without frequently changing prices. 

 So-called “menu costs” — the time and resources it takes to update pricing — are the deadweight costs of inflation, and can also turn off consumers.

As Bridgewater recounts in its founding story (emphasis ours):

“The corn and soymeal prices were the volatile costs the chicken producer needed to worry about. 

Ray suggested combining the two into a synthetic future that would effectively hedge the producer’s exposure to price fluctuations, allowing them to quote a fixed price to McDonald’s. 

 The poultry producer closed the deal and McDonald’s introduced the McNugget in 1983.”

Mind blown. Had no clue he did this! I love a good McNugget from time to time! Leave it to Wall Street financial engineering to unlock the beloved McNugget

history

Stacker_Sports

econ

>Early in his career, the Bridgewater founder was hired as a consultant to work with McDonald’s on pricing this new menu item. `McDonald’s wanted price security to be able to generate a solid return without frequently changing prices. ` So-called “menu costs” — the time and resources it takes to update pricing — are the deadweight costs of inflation, and can also turn off consumers.

>As Bridgewater recounts in its founding story (emphasis ours):

>“The corn and soymeal prices were the volatile costs the chicken producer needed to worry about. `Ray suggested combining the two into a synthetic future that would effectively hedge the producer’s exposure to price fluctuations, allowing them to quote a fixed price to McDonald’s. ` The poultry producer closed the deal and McDonald’s introduced the McNugget in 1983.”


Mind blown. Had no clue he did this! I love a good McNugget from time to time! Leave it to Wall Street financial engineering to unlock the beloved McNugget 

Cheers 🍻 to you Ray!