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Topic: How Cheap Things *Used* to be

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betarhoalphadelta

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Re: How Cheap Things *Used* to be
« Reply #140 on: June 04, 2026, 10:37:12 AM »
One could see if the stock price of MCD did anything extraordinary during the period.

https://www.alphaspread.com/comparison/nyse/mcd/vs/indx/gspc

Over the last decade, it seems to track SPX pretty closely.  So, perhaps average corporate greed.  I agree there is such a thing, this is a for profit corporation,  they exist to maximize earnings. 

So long as there is real competition, I don’t see a problem. 
Share price isn't the only story... Look at EPS: https://companiesmarketcap.com/mcdonald/eps/

2019 and prior, they never had EPS higher than $8. 2021 and beyond, they never had EPS lower than $8, and only one year below $10. 2025 EPS was 50% higher than 2019. 

Their quarterly dividend has risen 44% in the last 5 years along with EPS, which partially restrains share price appreciation--they're giving more profits back to their shareholders every quarter. Quarterly dividend has nearly doubled over a 10 year period.

Now, I don't know that they did anything "extraordinary", but if they were able to reap some additional profits by pricing for higher margin and that ended up being reflected in dividends rather than share price appreciation, it invalidates the thesis of looking at the stock price as a primary measure. 

FearlessF

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Re: How Cheap Things *Used* to be
« Reply #141 on: June 04, 2026, 10:52:10 AM »
Share price isn't the only story... Look at EPS: https://companiesmarketcap.com/mcdonald/eps/

2019 and prior, they never had EPS higher than $8. 2021 and beyond, they never had EPS lower than $8, and only one year below $10. 2025 EPS was 50% higher than 2019.

Their quarterly dividend has risen 44% in the last 5 years along with EPS, which partially restrains share price appreciation--they're giving more profits back to their shareholders every quarter. Quarterly dividend has nearly doubled over a 10 year period.

Now, I don't know that they did anything "extraordinary", but if they were able to reap some additional profits by pricing for higher margin and that ended up being reflected in dividends rather than share price appreciation, it invalidates the thesis of looking at the stock price as a primary measure.
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Cincydawg

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Re: How Cheap Things *Used* to be
« Reply #142 on: June 04, 2026, 10:55:10 AM »
Stock price is far from the only measure, but what metric should be used to indicate corporate greed?

MikeDeTiger

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Re: How Cheap Things *Used* to be
« Reply #143 on: June 04, 2026, 11:26:53 AM »
The OA Meter. 

847badgerfan

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Re: How Cheap Things *Used* to be
« Reply #144 on: June 04, 2026, 11:56:49 AM »
Consumer demand generally drives prices in the simple areas.

"Value meals" got to $15. No buy.

Back down to $8-9? Buy.

Corporate greed is driving gas prices. And taxes.

87 Gas here in Crook County is $5.15/gallon based on a few places I saw.

87 Gas where I live was $3.79 yesterday.
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SFBadger96

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Re: How Cheap Things *Used* to be
« Reply #145 on: June 04, 2026, 12:01:52 PM »
Ma Bell, I think.

Both Intel and Microsoft have faced heavy government scrutiny over the years.  The existence of Apple and AMD has saved them from severe government interference.  Government economists use various tools to analyze markets, the Herfindahl Index being one of the primary ones which measures the concentration of firms in an industry.
Antitrust enforcement has definitely slowed in recent years. Nonetheless, Intel, Microsoft, Amazon, Apple, Meta, and Google have all had to defend themselves from the Feds. The thinking on antitrust for a long time (since the 80s) has strongly favored low pricing instead of numbers of competitors, which effectively encourages oligopoly. Price controls are quite different than antitrust enforcement, and our political culture will have to dramatically change before price controls become palatable on a widescale basis--I doubt that will happen in our lifetimes. 

utee94

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Re: How Cheap Things *Used* to be
« Reply #146 on: June 04, 2026, 12:17:55 PM »
Antitrust enforcement has definitely slowed in recent years. Nonetheless, Intel, Microsoft, Amazon, Apple, Meta, and Google have all had to defend themselves from the Feds. The thinking on antitrust for a long time (since the 80s) has strongly favored low pricing instead of numbers of competitors, which effectively encourages oligopoly. Price controls are quite different than antitrust enforcement, and our political culture will have to dramatically change before price controls become palatable on a widescale basis--I doubt that will happen in our lifetimes.

Yeah.  I get really nervous when the government starts trying to interfere with market competition.  For example, due to massive barriers to entry, there are only a handful  of manufacturers that can design, create, and produce CPUs for computers.  And the market share is heavily concentrated within just two of them.  Some oversight here is understandable to help prevent anti-compettitive behaviors, but civil litigation takes care of a lot of that, and there's just no way to insist that this specific industry should have a dozen competitors.  That would be wildly unrealsitic.

jgvol

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Re: How Cheap Things *Used* to be
« Reply #147 on: June 04, 2026, 12:19:08 PM »
How about football tickets?  I remember face values at about 40 bucks.  And nearly having a heart attack at having to pay a Franklin for scalped tickets on the strip before game time.

SEC -- It just costs more!



Cincydawg

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Re: How Cheap Things *Used* to be
« Reply #148 on: June 04, 2026, 12:20:53 PM »
Those prices are in the secondary market set by supply and demand.

jgvol

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Re: How Cheap Things *Used* to be
« Reply #149 on: June 04, 2026, 12:24:32 PM »
Those prices are in the secondary market set by supply and demand.

The secondary market used walk the sidewalk in front of the stadium -- yelling, Tickets!  Tickets!

(But that was deemed illegal.  The new rapists are legal!)

847badgerfan

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Re: How Cheap Things *Used* to be
« Reply #150 on: June 04, 2026, 12:32:53 PM »
I remember paying $3.50 to see RUSH.
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utee94

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Re: How Cheap Things *Used* to be
« Reply #151 on: June 04, 2026, 12:36:08 PM »
The secondary market used walk the sidewalk in front of the stadium -- yelling, Tickets!  Tickets!

(But that was deemed illegal.  The new rapists are legal!)
When people stop paying the high prices, then the universities will stop increasing them.  I dropped my season tickets 9 years ago because the cost was just too much for me and I had other priorities.  But apparently there were plenty of people lined up behind me.


Cincydawg

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Re: How Cheap Things *Used* to be
« Reply #152 on: June 04, 2026, 12:39:24 PM »
Seat Geek doesn’t set prices, only their take.  

jgvol

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Re: How Cheap Things *Used* to be
« Reply #153 on: June 04, 2026, 12:44:13 PM »
When people stop paying the high prices, then the universities will stop increasing them.  I dropped my season tickets 9 years ago because the cost was just too much for me and I had other priorities.  But apparently there were plenty of people lined up behind me.



Supposedly there is a 20K + waiting list for Tennessee season tickets.  I find that hard to believe, but who knows.  Apparently there is more than 1 sucker born every minute.

We used to make at least one sojourn across the state every year, sometimes twice, to catch a game in Neyland.  For the past 2 years, we have foregone that treat solely due to the price of doing business. 

We take a second week long beach trip instead --- for the same price!

 

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