Oct. 26 (Bloomberg) -- Iceland’s McDonald’s Corp. restaurants will be closed at the end of the month after the collapse of the krona eroded profits at the fast-food chain, McDonald’s franchise holder Lyst ehf said.
McDonald’s in Iceland, which imports most of the ingredients it uses in its meals, will shut after costs doubled over the past year, Lyst said in an e-mailed statement today. The franchise holder said it doesn’t expect the situation to change in the short term.
“We would have to raise our prices by 20 percent to get the margin needed on our products,” Magnus Ogmundsson, Lyst chief executive officer, said in a phone interview. “That would have sent a Big Mac to 780 kronur” ($6.36), compared with the 650 kronur it costs today, he said.
The island’s currency collapsed last year following the failure of Iceland’s biggest banks. Offshore, the krona slumped as much as 80 percent against the euro, while capital restrictions this year have failed to prevent an 8.1 percent decline, making the krona the second-worst performer of the 26 emerging-market currencies tracked by Bloomberg.
LINK HERE
LUCKY ICELAND! No more GMO, High-fructose Corn Syrup,trans fats, MSG, Caramel Color, Soybean Oil, burger saw dust, Xanthan Gum, Mono- and Diglycerides for the citizens of Iceland.
ReplyDeleteIf the fast food outlets will be closing, I can hardly wait till the dollar collapses!
Doesn't it seem prudent to move somewhere like Iceland or Argentina where the banksters have already done their thing?
ReplyDeleteLiving in the USA right now is like standing on the beach waiting for the tsunami.
I'll buy that for a dollar!
ReplyDeleteI hate to think how much the waistline of the fat azz USA would shrink if we had to go back to healthy foods and more started to plant gardens, etc.
PASS ME A BIG MAC
burp.........belch..............
Those Icelanders were starting to look a little pudgy anyway.
ReplyDeleteLoL "Living in the USA right now is like standing on the beach waiting for the tsunami." the sheeple have no idea what is awaiting them. in two yrs we will be a destitute nation.and i live in ny it will be ugly.
ReplyDeleteCongratulations, Iceland. You're saved!
ReplyDeleteMy comment to Bob Chapman regarding Iceland w/his response
Me:
Since many forecasters say "look to Iceland" for what will happen in the USA, I thought it would be important to know how their currency behaved relative to gold. I thought this would make for an intriguing comparison and article. It seems strange that nobody is actively reporting this information. The same could be done for Ecuador, Zimbabwe, etc. thank you for your articles and videos.
Bob Chapman:
Iceland just got in over its head. There are only 320 thousand people in the country so it is not significant. Why forecasters use Iceland as an example I do not know. It doesn’t fit. The Krona has fallen about 80% versus gold. Zim is even worse. Ecuador – Bolivia and Venezuela with their communists governments will soon follow.
Here is USA McDonald prices are starting to catch up to a "finer" resturant's prices. $6+ for a chicken sandwich at MD's or go to a resturant and pay the same for better food. Plus, you can order a beer. I used to see a huge line a MD only a few months ago, now its a ghost town. Dont get fat, stop going to these places for food. Your health would be better off with a drug or alcohol addiction than this fast food crap.
ReplyDeleteI am shocked and surprised by this announcement. McDonalds has such a strong presence worldwide, so it is big news when a country does not have a McDonalds location.
ReplyDelete