Should McDonald's Be Rooting for HIGHER Unemployment?

A few month back, The Washington Post published an article that linked a dip in fast-food breakfast sales to rising unemployment. The argument was made that with fewer people making morning commutes to their jobs, fewer and fewer breakfasts were being purchased at "drive-thru" windows.

While the argument holds some water in terms of data relating to breakfast purchases, the overall numbers, especially for McDonald's, are much less correlative. 

Since the article was published in February the US unemployment rate has, according to numbers published by the Bureau of Labor, stayed almost entirely consistent (9.7% in February, 9.6% in September) but McDonald's has reported two very strong quarters of earnings.

So, while the numbers in the mornings might be down, could an unstable economy and a high rate of unemployment be good "Mickey D's?"

Jeremy Baker, a finance manager at Websense in San Diego, says that it's hard to see how the company couldn't be somewhat buoyed by customers needs to 'cut-back,' "[McDonald's] is often times the most convenient, least expensive and most kid-friendly food option for most people."


This combination of factors viewed through the optic of stagnating recovery and stalled job growth could mean big business for McDonald's.

With more people trying to save, more potential diners should flow through the 'Golden Arches.'

"They're not going anywhere anytime soon," Baker says of the future outlook for Ronald & Co.

If only the same could be said for the unemployed.