Omnipresent fast food chain McDonald’s (Stock Quote: MCD) is reportedly withdrawing all troops from the front in Iceland. Why, exactly?
The three main McDonald’s restaurants in Iceland’s capital, Reykjavik, are owned by an Icelandic company. McDonald’s and the company, Lyst, have mutually agreed to close down the restaurants. As Forbes explains, “The soaring krona has made importing lettuce and burger buns unprofitable in the increasingly debt-laden country.”
The franchise’s Icelandic owners reportedly “would have needed to increase the price of a Big Mac by 20% in order to make a decent profit, pushing the price of the sandwich up to 780 krona ($6.36), from the already-pricey 650 krona ($5.29). ‘For a kilo of onion, imported from Germany, I'm paying the equivalent of a bottle of good whiskey.’ he told Reuters.”
It seems as if McDonald’s would rather not operate at all than surrender to exorbitant Big Mac pricing. I’m glad I am on American soil, where such an outrage could never occur. I wish I knew how to quit you, Big Mac.
—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.