McDonald's abandons Iceland
Devastated Icelandic economy can't support Big Mac prices
The move says more about Iceland than it does McDonald's. Until recently, Iceland was one of the wealthiest countries in the world. But its financial system imploded in the global credit crisis, and its three biggest banks were ruined by high debt. Its currency went into a tailspin and its capital markets shut down.
The departure of McDonald's is perhaps a tacit acknowledgement that the country isn't coming back. McDonald's cited the "very challenging economic climate" on the island nation, according to the FT.
Icelandic McDonald's restaurants imported supplies from Germany, and their costs have doubled as the krona collapsed, the FT reported. The restaurants would have had to raise prices by 20% in response. That means the Icelandic Big Mac would have cost far more than the $6 Big Mac in Switzerland.
Now, Iceland will join Albania, Armenia and Bosnia and Herzegovina on the list of McDonald's-free countries in Europe.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
When a stock is a favorite of many of the most successful investors around, you know it's special.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.