McDonald’s, Chipotle hiking menu prices after California raises fast-food minimum wage

My ‘naked’ McDonald’s order is ‘irritating’ but also delicious and healthysaid Monday the fast-food giant will hike prices in California after Gov. Gavin Newsom recently signed into law a measure that would give wage earners a $20-an-hour minimum — although the company hasn’t yet decided by how much.

The Chicago-based burger chain — which cited “strategic menu price increases” as it revealed on Monday that its revenue surged 14% in the latest quarter — already has been hiking prices nationwide amid rampant inflation, including

Surging prices have forced consumers to pare back spending on fast food, according to McDonald’s executives. Fewer Americans earning $45,000 or less have been frequenting McDonald’s locations this past quarter, according to the company. headtopics.com

The latest inflation figures released by the federal government show that the cost of food away from home rose 6% in September compared to the same period last year.Meanwhile, Chipotle’s chief financial officer, Jack Hartung, told analysts on a company earnings call last week that the chain will likely raise prices by a “mid-to-high single-digit” percentage.

Beginning in April, California’s estimated 500,000 fast food workers will be paid a minimum of $20 per hour — up from the previous minimum wage of $16.21.The $20 per hour minimum wage would be the highest in the nation for the fast food industry.Chipotle’s CFO, Jack Hartung, told analysts on a company earnings call last week that the chain will likely raise prices by a “mid-to-high single-digit” percentage.The Golden Arches brought in a total of $6. headtopics.com

McDonald’s — which has 13,513 restaurants in the US and over 38,000 abroad — did not disclose how much the franchiser has increased its prices, which generally vary between locations.

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