8th grade edumacation showing.
"Denny's is one of several publicly-traded restaurant chains whose executives have told investors in recent months that Democrats' proposed minimum wage hike is not a real threat to their business and may even be a net positive, according to a Daily Poster review of corporate earnings calls."
"The Cheesecake Factory is now partially owned by private equity firm Roark Capital Group, whose fast food chain recently bragged that it helped convince Congress not to include a $15 minimum wage measure in the American Rescue Plan.
"Labor input is just a cost input," said Matt Clark, Cheesecake Factory's chief financial officer. "And you can try to put some technology around it to improve efficiency and such. But at the end of the day, most competition prices for it. And I think that's the necessity to maintain margin structures that are competitive and attractive for continued investment."
Clark added that a wage hike could affect some of the company's competitors, and "ultimately the stronger survive and take market share."
The comments were hardly anomalous: over the last two months of earnings seasons, top executives from DiamondRock Hospitality, Kroger, HCA Healthcare, Hilton and Six Flags all downplayed the negative effects of a prospective minimum wage increase, and some have argued it would boost consumer spending. The statements from leaders across various service industry sectors undercut corporate lobbying groups in Washington that have pretended such a wage increase would destroy the economy.
"Many including me are supportive over time that the minimum wage needs to move up," said Hilton CEO Chris Nassetta in a February earnings call. "I think we should all assume that the minimum wage is going to be going up over time. In fact, because it needs to."
"To the extent that there is minimum wage increases in certain of our demographics where we operate, that has got a halo effect on the revenue side," said Six Flags chief financial officer Sandeep Reddy during a February earnings call, in response to a question about whether a higher wage helps boost spending at its parks.
Six Flags' CEO Michael Spanos added: 'We're roughly half teens and young adults and roughly half families and children and to Sandeep's point, we think it absolutely helps in that regard [to] put more money in their pockets."
Thanks, Family Jewels, for being such a softball poster!