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.

California Voters Pass Proposition 1 to Address Homelessness Crisis

California Voters Pass Proposition 1 , to Address Homelessness Crisis. In a state that accounts for close to a third of all homeless people in the United States. California counties will now be required to spend money "on housing and drug treatment programs" to fight homelessness, NPR reports. . Gov. Gavin Newsom raised over $13 million to promote the measure. Proposition 1 represents California's first mental health system update in 20 years, NPR reports. . This is the biggest change in decades in how California tackles homelessness, and a victory for doing things radically different, Gov. Gavin Newsom, via statement. Now, counties and local officials must match the ambition of California voters. , Gov. Gavin Newsom, via statement. This historic reform will only succeed if we all kick into action immediately – state government and local leaders, together, Gov. Gavin Newsom, via statement. Revenue from a tax on millionaires, enacted in 2004, brings in about $2 billion to $3 billion a year toward California's mental health budget, NPR reports. . Counties will now be required to spend two-thirds of that money to tackle homelessness. . The state will also be allowed to borrow $6.3 billion to create an additional 6,800 beds for mental health and addiction treatment. That money can also be used to construct 4,350 housing units. Half of those housing units will be for veterans