01 November 2008

Burger King Stock Up - Why the surprise?

The headline reads: Burger King up despite downturn

As if this event is at all surprising.

Burger King Holdings Inc. posted higher sales in North America and stood by its full-year profit forecast in the face of an economic downturn. The world's No. 2 hamburger chain said sales at global stores open at least one year rose 3.6 per cent. Same-store sales in North America were up three per cent, helped by menu items like Apple Fries and Kraft Mac & Cheese.

Why would anyone be surprised that individuals and families who likely frequented middle to up-scale restaurants in the past are now turning to Burger King? I've no doubt that the profits of MacDonald's and other fast-food chains are up too.

This is only further evidence of the widening gap between the rich and the poor, the result being a lopsided hourglass with bloated head (wealthy), skeletal torso (upper to lower middle class) and enormous hips (the huge numbers below the poverty line).

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