Higher Wages For Fast Food Workers Could Benefit Shareholders

[Teamster Jeff]

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On the face of things, the goals of fast food workers seeking higher pay and those of fast food shareholders seeking the highest investment returns seem permanently at odds, with the increased fortunes of one coming directly out of the pockets of the other.

But any investor who reaped the 733% five-year return from Starbucks SBUX +0.04% shares, or the 738% gain in Chipotle Mexican Grill CMG +0.27%, holds proof that higher worker wages can be good for shareholders too.

Starbucks and Chipotle are famous for jobs that pay real career wages, rather than the welfare-eligible pay most fast food workers earn. Starbucks CEO Howard Schultz is a fan of raising the minimum wage, an issue that’s heated up nationally recently with strikes and protests by fast food workers. Starbucks already starts out workers at about $11.50 an hour, well above the $7.25 an hour wage required by federal law.

Chipotle is renowned for quickly moving workers from starting pay levels into higher paying management jobs. Starting pay for “crew,” the people who make the burritos, averages about $10.50 an hour ($21,000 a year) with benefits, according to some reports; $8.50 an hour by others.
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For shareholders in companies with an abundance of near minimum wage earners, there’s been no obvious gain for the stinginess. The chart below shows share performance for some of these companies—McDonald’s (MCD), Burger King Worldwide BKW +2.39% and YUM Brands (YUM), owner of KFC and Pizza Hut—against Starbucks and Chipotle.

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http://www.forbes.com/sites/investor/2013/12/24/hirer-wages-for-fast-food-workers-could-be-better-for-shareholders/

[pansypoo53219]

1. henry ford was no dummy. then ayn rand took over under reagan.

sucks since then.