McDonald's & Chipotle Raising Menu Prices In California After Minimum Wage Increase

McDonald's Posts Disappointing Q1 Results Amid Ongoing Boycotts

McDonald's Posts , Disappointing Q1 Results , Amid Ongoing Boycotts. 'The Independent' reports that McDonald's posted weaker- than-expected results in the first quarter of 2024, as a result of a boycott over the company's perceived support for Israel. . 'The Independent' reports that McDonald's posted weaker- than-expected results in the first quarter of 2024, as a result of a boycott over the company's perceived support for Israel. . According to McDonald's, higher sales in the United States helped the fast-food giant overcome weakness in markets where the brand is being boycotted. According to McDonald's, higher sales in the United States helped the fast-food giant overcome weakness in markets where the brand is being boycotted. The company saw same-store sales rise by 1.9% worldwide between January and March, below the Wall Street forecast of 2.1%. Increased menu pricing and delivery demand saw same-store sales in the U.S. increase by 2.5%. In international markets, sales fell by 0.2% for the first time since 2020. Despite this, McDonald's said the company's revenue increased 5% to reach $6.17 billion, while net income went up 7% to $1.93 billion, in-line with Wall Street estimates. 'The Independent' reports that Muslim-majority markets like Indonesia, Malaysia and the Middle East have been boycotting McDonald's for months. The boycotts started after a McDonald's franchise in Israel announced in October that it would provide free meals for Israeli troops amid the ongoing war in Gaza. In the months since then, the company has tried to limit the fallout by taking over all 225 McDonald's in the country with the purchase of Alyonal Limited, its Israeli franchise. Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone, McDonald's statement, via 'The Indepndent'. Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone, McDonald's statement, via 'The Indepndent'

Fast Food Chains Warn Consumers That Worker Pay Increases Will Impact Prices

Fast Food Chains Warn Consumers , That Worker Pay Increases Will Impact Prices. 'Newsweek' reports that franchises have warned an increase of the minimum wage for fast food workers in California could also force menu prices to climb. As of April 1, fast food restaurants in California will have to pay employees at least $20 an hour, an increase of four dollars from the current $16 an hour. . Business owners have warned that the new law, signed in by Democratic governor Gavin Newsom, will have an impact on margins and consumer costs. . At the end of October, McDonald's CEO Chris Kempczinski said that the impact of the minimum wage rise would be partially "worked through with higher pricing.". At the end of October, McDonald's CEO Chris Kempczinski said that the impact of the minimum wage rise would be partially "worked through with higher pricing.". According to McDonald's numbers, the price of the signature Big Mac burger is currently $5.89 in California, the 10th highest in the United States. The latest data compiled by 'The Economist' shows that the average price of a Big Mac nationwide is currently $5.69, which is up from $5.36 at the same time in 2023. . Last year, McDonald's , reported net profits of , almost $8.5 billion. According to the company's latest financial reports, sales increased 8.7% in the U.S. in 2023, which the company attributed to "strategic menu price increases.". According to the company's latest financial reports, sales increased 8.7% in the U.S. in 2023, which the company attributed to "strategic menu price increases.". Meanwhile, Jack Hartnung, the CFO of fast food chain Chipotle, told investors that the wage increase would impact consumer prices with a "mid-to-high single digit" percentage increase. Meanwhile, Jack Hartnung, the CFO of fast food chain Chipotle, told investors that the wage increase would impact consumer prices with a "mid-to-high single digit" percentage increase. In December, Pizza Hut cited the wage increase as the reason behind laying off the company's in-house delivery drivers. . In December, Pizza Hut cited the wage increase as the reason behind laying off the company's in-house delivery drivers.

Krispy Kreme to Be Sold at McDonald’s Nationwide

Krispy Kreme to Be Sold , at McDonald’s Nationwide. Krispy Kreme to Be Sold , at McDonald’s Nationwide. Both food chains made the announcement on March 26, CNBC reports. . The rollout will start later this year but will take until the end of 2026 to reach McDonald's nationwide. . That's because Krispy Kreme will have to "more than double its distribution" to meet demand, CNBC reports. . We think we can service about 6,000 restaurants with our existing infrastructure, mostly doughnut shops, which have excess capacity, Krispy Kreme CEO Josh Charlesworth, to CNBC. Shares of Krispy Kreme jumped 22% following the announcement. Krispy Kreme is also expanding distribution to grocery and convenience stores. That means that the overall efficiency and productivity of our distribution network will significantly improve over time, not just because of all those local deliveries. , Krispy Kreme CEO Josh Charlesworth, to CNBC. Currently, Krispy Kreme typically makes more doughnuts than it can sell, so churning out even more product will take few additional costs. . Currently, Krispy Kreme typically makes more doughnuts than it can sell, so churning out even more product will take few additional costs. . Overall, therefore, it makes our system more profitable to grow the deliver fresh daily channel, and McDonald’s is an accelerator of that, Krispy Kreme CEO Josh Charlesworth, to CNBC. Overall, therefore, it makes our system more profitable to grow the deliver fresh daily channel, and McDonald’s is an accelerator of that, Krispy Kreme CEO Josh Charlesworth, to CNBC

Red Lobster Announces Nearly 100 Locations Will Be Shut Down

Red Lobster Announces, Nearly 100 Locations , Will Be Shut Down. NBC reports that approximately 99 Red Lobster locations will be auctioned off as the seafood chain faces questions regarding the company's long-term future. Founder and CEO of the liquidation firm TAGeX Brands, Neal Sherman, said he would lead the closure of over 50 locations in a May 13 LinkedIn post. Sherman said equipment from the locations will be auctioned off. Locations will reportedly be closed across the United States, including Denver, Indianapolis, California and New York. On May 14, Restaurant Business Magazine reported a total of 99 locations would close, representing about 15% of the company's 700 locations. . NBC reports that the largest seafood restaurant in the U.S. has struggled with debt, unfavorable leases and executive turnover. The chain's troubles also stem from ill-advised strategies like an all-you-can-eat-shrimp promotion in 2023 that resulted in a significant loss. Earlier in 2024, the chain's largest investor, Thai Union, announced that it would seek to exit its position. . The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC. After detailed analysis, we have determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC

Harry and Meghan’s Archewell Delinquent Over Unpaid Fees

Harry and Meghan’s Archewell , Delinquent Over Unpaid Fees. The Duke and Duchess of Sussex's charity is currently prohibited from raising money in California because it's been found delinquent in the state, NBC News reports. . California Attorney General Rob Bonta was responsible for issuing the delinquency notice. . According to the state of California, Archewell has yet to pay its yearly registration fees or submit an annual report. A source familiar with the situation said that the foundation's check was lost in the mail, but another one has been sent out. . The issue will likely be resolved in a matter of days, according to the source. Meanwhile, Harry and Meghan have been in Nigeria supporting causes such as wounded veterans. Meanwhile, Harry and Meghan have been in Nigeria supporting causes such as wounded veterans. The Archewell Foundation was launched in 2020 after the couple stepped away from the royal family. The foundation's mission is, "Show up, do good.". We consciously partner with key organizations and leaders to identify immediate needs, build meaningful initiatives, and drive long-term change, Via the Archewell Foundation's website