Unless a minimum wage increase results in a sudden comparable increase in worker productivity, prices will go up. That will largely negate any additional buying power for those workers. It's an old adage, but no less true now than before: "we (economists) all or nearly all consent if wage rates rise by ten percent, it puts a choice before the nation of unemployment or inflation."
Without a doubt, there are problems a DRI. Specifically, their OG and RL chains need revamping. However, after multiple earnings misses, it sounds like the analysts need to revamp their analysis in determining EPS estimates. They keep missing, too.
She posted a pic of the ticket online, violating both the customer's privacy and corporate policy. If that is not a terminal offense, what is?
Sentiment: Strong Buy
What many people forget is that a lot of people working at McDonalds or at similar jobs are making over minimum wage. Also, many of them are teenagers with part-time jobs who are supported financially by their parents. Their paychecks are all discretionary income. We could double the minimum wage, but what good would it do? Jobs would be lost and prices would rise. Increasing wages doesn't automatically increase productivity.
According to the press release, there were $.03 per share in one-time non-recurring charges, so was this really a miss?
That 7% discount can quickly disappear once the tendered PFE shares are retired and over 400 million ZTS shares hit the market. ZTS has the greater long-term growth prospects, but dividend investors likely prefer PFE. I don't think it's as simple as flipping ZTS for a quick 7% gain (minus tendering fees and trading commissions).
Correct, steppenwolfe10. We do not need to be issued ZTS shares to benefit from the IPO. We as PFE shareholders collectively own about 80% of ZTS so we will benefit by PFE's stock price rising if ZTS's stock also rises.
You own PFE. PFE owns 80% of ZTS and has over $2B additional cash from the IPO. As ZTS shares rise, PFE shares rise with it, all other things being equal. There are no plans to issue ZTS shares to PFE stockholders currently, but we still benefit as ZTS shareholders via PFE.
Pfizer should get about $2B cash from the IPO and will own 80% of ZTS, so if the company does as well on its own as it has under PFE it should be good for PFE shareholders.
Believe it or not, cash is an asset. However, in this case, the cash is also provided to banks as demand deposits, so an entry is also made on the liabilities side, to deposits. How else would the balance sheet balance? The bank may make additional use of the cash deposited, through loans, etc. When money is loaned a credit is made to cash and a debit is made to loans/notes receivable. To do one without the other would leave the balance sheet unbalance. I hope you enjoyed today's remedial accounting lesson.
Are deposits not cash? They are assets to banks. They are also liabilities, as the money is owed to depositors, pursuant to the deposit agreement (most deposits are available by the next business day, but CDs and other longer-term deposits may have penalties/limits on early withdrawal).