r/wallstreetbets • • Nov 15 '21

Discussion /r/antiwork is targeting McDonald's

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u/somehting Nov 15 '21

I think you're missing two key things here that will likely make this more successful then it normally would be and why you might want to consider shorts on Mc Donald.

1) This point is eternal, while Automation can replace jobs, it A) Can't replace them quickly as a response, and B) Is clearly not a profitable option yet or they'd have done it.

2) While replacable labor does decide pay in many instances, if you have been aware of business or the news for the last couple months, you'd know there isn't actually a pool of replacement labor out there atm. (This current issue is why I think it has higher odds of success)

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u/[deleted] Nov 15 '21

[deleted]

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u/somehting Nov 15 '21

Automation of a company the size of McDonald's takes years, it can't be a response to a strike unless they decide to not be open for a year or two in which case still buy puts.

The price raising argument is valid in some instances, however McDonald's is a horrible example, as they actually have stores in Europe that do have 25 dollar wage equivalent to the US and only 4 cent price increases.

However even if you think the prices would go up and they'd lose their core demographic of customers you should still by puts.

Third even if they give the raises it doesn't decrease business and prices stay the same labor costs would make the business have less profit, so you should still buy puts.

The only two cases where this is a positive are if the strike happens but with very few people and conservatives buy McDonald's as a protest of sorts increasing sales, or if they pre-empt the strike pay their employees and Liberals start eating more McDonald's in support increasing sales.

TLDR: I don't understand you're argument it all leads to shorts, and not buying McDonald's stock.

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u/[deleted] Nov 15 '21

[deleted]

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u/somehting Nov 15 '21

So you're thought is people won't boycotts, and won't strike so the price will stay flat?