McDonalds - Declining COGS and SG&A
Why is McDonalds seeing a decline in both its COGS and SG&A expenses? Its revenue is falling yet because of the aforementioned reason its net earnings are rising. Any help is welcome.
I didn't think BurgerKing would fall this low to talk garbage about its competitor on WSO.
This is so petty that it reminds of this time at Evercore where this one analyst who would regularly wear a red beret to work, ate 6 chocolate brownies that were leftover in the pantry after a client meeting so that other analysts in her group couldn't eat any.. Karma is a bitch tho cause she put on 20 pounds of leverage real quick.
Fuck the other dude but I'm looking at both their latest 10k and 10q and overall revenues have increased. Additionally on their latest 10k sg&a is up yoy, that being said I think the "decrease in cogs" you're referencing is the decrease in expenses with regards to company-operated restaurants but this is normal since franchise revenues went up while company-operated revenues went down.
I think he meant the revenue growth is declining.
decreasing revenue growth doesn't preclude increases in absolute net income
No it doesn’t but I was merely saying that OP was mostly referring to growth rather than absolute numbers.
I don't get this. If revenue is falling, then of course less costs are being incurred, sometimes at a faster rate so of course, the net earnings can rise.
Why is this the case? Well, just look at the 10-K for that.
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