Inflation, McDonalds, and Stock Splits.

Oh the days you could eat on pennies.

I have heard some very bad theories on McDonalds (Think Super Size Me) , some very good one ones, (No Country that has a McDonalds has gone to war with each other) and now an interesting one. (Burgernomics?)

Yes the Big Mac index exists and it is used in some interesting ways.. One of the ways is to judge which country may be understating or overstating inflation.. As it happens, if a restaurant has to raise its food prices to offset inflationary conditions in a region, it creates a very measurable change.  This change is fun to observe and creates an easy index to evaluate inflation. If the burger goes up 20% and the country stated it only had 10% inflation, you can see this country may be understating inflation. If food prices go up, the rent goes up, then the almighty burger goes up.. You can see based on the picture above the burger is no longer 15 cents and the theory lives on.  If you don't travel much you may not know that a Burger in Texas has a different price compared to one in New York.

here is a direct link to economist.com article on the Mcflation index.


Will McDonalds Split already? Based on historical numbers I believe a split is coming but it has to go above $80 a share and stay there.. Last time it only brushed 80.00 and proceeded to fall from there.  Here is a link to the history of McDonald's Stock split.