downloaded the Profit and Loss statement as an Excel SS. ( At the link you will find a tiny image indicating you can download an excel spreadsheet of the Profit and Loss statement. )
Without going into too much detail, I factored computed what the labor cost percentage (of revenues) was for McDonalds owned stores and applied that percentage to the revenues from franchised restaurants to get the labor costs of the franchised restaurants. I appied the 35% increase tothe stated labor costs for McDonald's owned stores and tothe inferred labor costs for franchised outlets. This gives you th e price increase needed to cover increased labor costs. I did some factoring to bumpup revenues to keep the profit rate the same (explaining this process is really not feasible without an excel spreadsheet to show you).
Basically its this. Labor costs are about 25% of revenues. So an increase of 35% to a fraction (25%) of revenues means the increase to revenues will be about one fourth the size of the % increase to labor costs. You have to increase somewhat more than that if you figure in profit too. I can't pull up my SS now as Google site hosting won't let me.
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