Most consequentially, a Trump administration is expected to stick a fork in the National Labor Relations Board's push to up-end McDonald's franchising model by labeling the fast-food giant a joint-employer of franchisee workers.
Still, McDonald's was largely an afterthought on investors' post-election buy lists — until Monday. McDonald's rose 0.4% to 118.32 on the stock market today, the best since mid-August, after jumping 3.2% on Monday. Meanwhile, shares of Wendy's (WEN), which broke above a buy point at 11.00 on Nov. 7, added about 2% to 11.94.
That legal battle threatened not only to make McDonald's and other major fast-food chains liable for workplace violations by independent operators, but also may have forced the parent company to the collective bargaining table with franchisee workers seeking to unionize.
On top of that, a Trump victory promises relief for employers in modest-wage industries like fast food on multiple fronts. The ObamaCare employer mandate, which fines employers with at least 50 full-time-equivalent workers if they fail to offer acceptable health insurance to workers clocking at least 30 hours per week, will likely be repealed by the unified Republican government. The Obama administration's overtime rule, which doubles the pay threshold for salaried workers who can be denied time-and-a-half overtime pay to $47,476 effective Dec. 1, is likely to be watered down.
That menu looks a whole lot more appetizing to McDonald's, its franchisees and investors than Hillary Clinton's plan to raise the minimum wage to at least $12 an hour and require companies to provide paid leave to workers, while continuing to have the NLRB carry forward its attack on the Golden Arches business model.
Still, the results of Tuesday's vote weren't a clean sweep for McDonald's. Arizona, Colorado and Maine voted to raise their minimum wage to $12 an hour, with Washington state voters approved a $13.50 minimum wage, all by 2020.
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