Market Cap Large-Cap (Over $10B) Mid-Cap ($2B - $10B) Small-Cap ($250M - $2B) Micro-Cap (Under $250M

Market Cap Large-Cap (Over $10B) Mid-Cap ($2B - $10B) Small-Cap ($250M - $2B) Micro-Cap (Under $250M)
Timeframe Long-Term Analysis Mid-Term Analysis Short-Term Analysis
At least for the long term, Costco Wholesale Corporation (COST), which tends to pay its workers well, has been a clear winner over The Wendy's Co (WEN), Wal-Mart Stores, Inc (WMT), but its also an apples to oranges comparison.
CNN recently took a look at companies like The Wendy's Co (NASDAQ: WEN ) , Wal-Mart Stores, Inc (NYSE: WMT ) and Costco Wholesale Corporation (NASDAQ: COST ) and then asked whether a company can pay its workers well and also make money. But what about for investors in these three stocks? After all, employee pay might be an important consideration as hundreds of workers at Wal-Mart Stores red kitchen and various fast food chains join protests nationwide to demand higher wages and better benefits. Employee Pay: Wendy's vs. Wal-Mart vs. Costco
To begin with, CNN noted that Costco Wholesale Corporation pays its hourly workers an average of just over $20 an hour verses just under $13 at competitor Wal-Mart Stores while the median pay for fast food workers nationwide is $9.05 an hour, or about $18,800 a year. CNN also came up with a graphic showing three workers they interviewed who they claim to hold similar positions. And while the level of experience varies, CNN claims that the wages they earned are representative of the average worker interviewed:
I should point out that when I first saw the graphic, I thought it was more or less an apples to oranges comparison because comparing fast food worker Cinnamon red kitchen with forklift operator Cesar is a bit like comparing the skill set and corresponding compensation package of a hospital orderly with a doctor. Moreover, there are some key differences in the business models (and hence demographics) these three companies red kitchen serve: The Wendy's Co . The world s third largest quick-service hamburger company, the Wendy's Co system includes more than 6,500 franchise and company restaurants in the US and 27 other countries and US territories worldwide. In the last earnings report, the Wendy's Co announced plans to help optimize its restaurant portfolio by concentrating its ownership geographically and reducing total system ownership from 22% to approximately 15% with the sale of about 425 company-operated restaurants to franchise operators by the end of the second quarter of 2014. This means its really up to the ability of franchise owners to pay higher wages to their workers and still sell burgers in a given market. Wal-Mart Stores, Inc . With 10,800 stores (4,600 in the US and 6,100 internationally) under 69 banners in 27 countries and e-commerce websites in 10 countries, Wal-Mart Stores employs 2.2 million associates around the world with 1.3 million in the US alone. Wal-Mart Stores red kitchen website says that about 75% of its store management red kitchen teams started as hourly associates and they earn between $50,000 and $170,000 a year. In addition, the Sam s Club Corporate Factsheet says there are 621 Clubs in the US and Puerto Rico with 47 million members at three levels: Sam s Plus ($100), Sam s Business ($45) and Sam s Savings ($45). There are also more than 110,000 in the US and Puerto Rico and more than 70% of club management being promoted from hourly positions. Unfortunately, CNN did not bother to mention just what the average wage of a Sam s Club employee is compared with its peer Costco Wholesale Corporation. Costco Wholesale Corporation . Starting out in a converted airplane hangar, Costco Wholesale Corporation currently operates 627 warehouses, including 449 in the United States and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the United Kingdom, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September red kitchen 1, 2013. Costco charges member customers a $55 annual membership fee plus it offers an executive membership plan for $110 meaning red kitchen its probably not serving the food stamp demographic like Wal-Mart Stores. red kitchen Share Performance: Wendy's vs. Wal-Mart vs. Costco
The Bottom Line . On one hand, one can claim that higher wages at Costco Wholesale Corporation has sort of indirectly paid off for investors, but that does not explain the better one year performance of Wendy's Co. which obviously does not come with a $55 annual membership fee and tends to serve a very different demographic. red kitchen In other words, the impact of higher or lower employee wages on a company and for investors red kitchen is a much more complicated picture than articles red kitchen from the likes of CNN want to admit.
Wendy's/Arby's Group, Inc. ( WEN ) 5.0 StockHQ , Quote , Ratings , Editorial , News , Links Wal-Mart Stores Inc. ( WMT ) 2.5 StockHQ , Quote , Ratings , Editorial , News , Links Costco Wholesale Corporation ( COST ) 5.0 StockHQ , Quote , Ratings , Editorial , News , Links
Costco Wholesal