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Obama-Care To Cost McDonald’s $420M A Year

From the Wall Street Journal:

McDonald’s CFO Sees Up to $420M in New Health-Care Costs

Maxwell Murphy | July 23, 2012

The Affordable Care Act could cost McDonald’s and its franchisees more than $400 million a year in additional health-care expenses, Chief Financial Officer Peter Bensen said on Monday.

McDonald’s estimates that each restaurant will incur between $10,000 and $30,000 in added annual costs, Bensen said in response to an analyst’s question on a conference call to discuss the fast-food giant’s second-quarter results, according to an unedited transcript of the call provided by FactSet. There are about 14,000 McDonald’s restaurants in the U.S., meaning McDonald’s expects the total cost to the company and its franchisees to be in the range of $140 million to $420 million…

Lest we forget, McDonald’s is the poster child for Obama-Care ‘waivers.’ In fact, it was because of McDonald’s we first heard about Obama-Care waivers. As you will recall, both McDonald’s and the Obama administration first tried to deny that they were getting a waiver. But then they had to admit it.

Then we began to hear about all of the other companies, unions and even states that were being given waivers, quietly and under the table.

Bensen added that the wide range is due to a number of variables, including the number of employees per restaurant and how many are full-time workers. Spokeswomen for McDonald’s added that the final cost will also depend on what percentage of its eligible employees elect to accept health insurance from the chain, as well as any changes McDonald’s might make to its health-care plan.

McDonald’s worked with its franchisees to analyze and estimate the potential costs, the spokeswomen said, which could be mitigated by higher menu prices…

And a lot of other companies are going to have to ‘mitigate’ the cost of Obama-Care by raising their prices.

As the Wall Street Journal points out on their Smart Money blog:

Will Obamacare Raise the Price of a Big Mac?

By Jen Wieczner | Thursday July 26, 2012

In exchange for lower health premiums under Obamacare, experts say shoppers could pay higher prices on everything from printer paper to French fries.

Complying with the Affordable Care Act will cost as much as $420 million annually, McDonald’s CFO Peter Bensen said during a conference call Monday, according to CFO Journal. And when the new law goes fully into effect in 2014, it’s possible menu prices will be raised to cover the health costs.

Analysts say businesses with a large number of hourly wage workers, who traditionally had minimal or no health insurance—from fast food joints to retailers—may have to adopt a similar strategy…

Peter Saleh, a restaurant analyst at Telsey Advisory Group, expects sit-down diners at restaurants like The Olive Garden, owned by Darden Restaurants (DRI), and The Cheesecake Factory (CAKE), which own a greater proportion of their locations than some fast food chains, to eventually pay at least 2% more to eat there…

Even if companies haven’t publicly discussed whether their increased health-care costs will trickle down to their price tags, executives have floated the possibility in meetings with investment pros. Nicholas Oleson, a financial planner with The Philadelphia Group, says his clients at large pharmaceutical and software companies have suggested that they may raise prices 2 or 3% while their employees pay up to 7% more in insurance premiums…

Remember how back during the Obama-Care debate some pointed to the higher cost of food and everything else in Europe, and blamed it on their various forms of socialized medicine?

Remember how they were mocked? Remember how we were told it would never happen here? That, in fact, the price of healthcare and everything else would actually go down.

Well, now we are starting to see the truth. Everything is going to start costing more.

This article was posted by Steve on Friday, July 27th, 2012. Comments are currently closed.

5 Responses to “Obama-Care To Cost McDonald’s $420M A Year”

  1. GetBackJack says:

    Learn to take care of your own health.


  2. AcornsRNutz says:

    Hmm. So is Whole Foods expecting a similar problem? How about a certain office supply chain who is big into the LGBT agenda? The Disney company? Any major media for that matter? How about GE with their frightening Smartgrid technology? I’d ask about all the green energy companies, but they are all bankrupt anyway. No, I suspect most of those companies feel a waiver is pretty well assured.

    I suspect an old familiar trend with companies who are hardest hit by this oboma-nation of a law will surface very quickly.

  3. Liberals Demise says:

    McAdoo’s is infested with fleas by the dogs they lay with.

    • JohnMG says:

      Here’s your affordable care, for you.

      The current per-person monthly premium for Medicare (which is deducted from the monthly Social Security benefit of those receiving it) is $96.40, but it will be rising to $104.20 toward the end of 2012. In 2013 it will rise to $120.20, and will rise to $247.00 in the year 2014. The first increase is delayed until after the November elections.

      Keep in mind that everyone, upon turning age 65, MUST sign up for Medicare. If this already includes you, as it does me, you ought to be pissed! Nancy Pelosi and her ilk aren’t affected by this, but the full impact of her “We had to pass the bill to see what was in it.” plaint should make you angry enough to slap that wretched old gas-bag senseless. (Although you wouldn’t have to slap very long to achieve that end.)

      Once again, Obama’s lie is placed on display for anyone with a scintilla of sense to observe. “No tax hike for anyone making under $250,000 bucks.” I don’t know about the rest of you, but my monthly benefit places me well UNDER two-fifty K’s for income, but I can’t refuse to pay, as they AUTOMATICALLY deduct it from Social Security before I get it. (Now do you see why the government mandates that all SS benefits MUST be direct-deposited?)

      We’ve got to send this lying bastard back to Kenya from whence he came!

    • srow says:


      Excellent job at propagating a bald faced LIE:


      It’s funny how your side needs to lie about every darn thing in order to win people over.

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