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☆ Starbucks Middle East franchisee to slash over 2,000 jobs as boycotts linked to the Israel-Gaza conflict hit Western brands, says report
▼ + stars: | 2024-03-09 | by ( Nathan Rennolds | ) www.businessinsider.com time to read: +3 min

This story is available exclusively to Business Insider subscribers. In a statement in December, Starbucks CEO Laxman Narasimhan said protesters had been "influenced by misrepresentation on social media" of what the company stands for. AdvertisementA Starbucks spokesperson told Business Insider: "As Alshaya reviews its business portfolio they have made the difficult decision to eliminate some roles in their Starbucks store portfolio." The layoffs came as Starbucks and other Western brands such as McDonald's and KFC have faced consumer boycotts over the Israel-Gaza war. "So long as this war is going on ... we're not expecting to see any significant improvement (in these markets)," McDonald's CEO Chris Kempczinski said.

Persons: —, Laxman Narasimhan, AlShaya, Narasimhan, we're, Chris Kempczinski, Jack Guez Organizations: Service, Reuters, Palestine, Business, Starbucks, AlShaya, KFC, Getty Locations: East, North Africa, Gaza, Israel, Palestine, Kuwait, Indonesia, Malaysia, France, Sderot, AFP

☆ Here's what might happen after California raises fast-food wages to $20, from higher burger and pizza prices to better wages for retail workers
▼ + stars: | 2024-03-05 | by ( Grace Dean | ) www.businessinsider.com time to read: +6 min

AdvertisementBurgers, tacos, and pizzas will get more expensiveDiners should expect to pay more as fast-food restaurants put menu prices up to offset higher wages. But restaurants already paying workers higher wages will feel less of an impact from the new legislation. Jon Tower, an analyst at Citi, said the higher prices could be hard for some diners to accept. However, higher wages at McDonald's, Subway, and Burger King will likely prompt other employers to offer higher pay so they can compete for labor. AdvertisementPeople will have more money to dine outAs fast-food workers' wages increase, they'll actually have more disposable income to spend dining out.

Persons: —, Gavin Newsom, It's, Jack, Sharon Zackfia, William Blair, Andy Barish, Sara Senatore, Chris Kempczinski, they're, Jon Tower, Barish, Zackfia, Burger, Danilo Gargiulo, Bernstein, Matt Clark Organizations: Service, Golden State, Gov, Jefferies, Bank of America, Citi, Bureau of Labor Statistics Locations: California, McDonald's

☆ Diners are getting annoyed at how expensive fast food has become — and the likes of McDonald's, Taco Bell, and Shake Shack seem to be listening
▼ + stars: | 2024-02-16 | by ( Grace Dean | ) www.businessinsider.com time to read: +5 min

AdvertisementChains like McDonald's, Shake Shack, and Taco Bell say they're only planning small price increases in 2024 as inflation cools. But in the year to January 2024, prices at limited-service restaurants rose just 5.8%, per BLS data. Martin Jennings, a 51-year-old truck driver from Florida, told Business Insider that his family was being deterred by higher prices at fast-food chains. Customers are looking for app deals and choosing value menusCustomers are looking for ways to get cheaper meals at fast-food chains. Chipotle said it's eyeing a price increase in the mid-single digits, depending on consumer sentiment and actions taken by other fast-food chains.

Persons: —, Taco Bell, Martin Jennings, Ben Heyworth, Burger King, McDonald's, Ian Borden, Jennings, David Gibbs, Kempczinski, Gunther Plosch, Chipotle, it's, Katie Fogertey Organizations: Service, Bureau of Labor Statistics, Shack, Taco, Brands Locations: Florida, Orlando, Burger, Taco Bell, California, America

NEW YORK (AP) — As some of the world’s biggest economies stumble into recession, the United States keeps chugging along. Yet in the United States, the economy motored ahead in last year’s fourth quarter for a sixth straight quarter of growth. But, for now, the outlook continues to appear better for the United States than many other big economies. Even China, whose economy is growing faster than the United States’, is under heavy pressure. Some pillars of support for consumer spending may be weakening.

Persons: Solita Marcelli, Biden, ”, Diane Swonk, They've, Catherine Mann, Morgan Stanley, Chris Kempczinski, he’s, ” ___ Rugaber Organizations: U.S, UBS Global Wealth Management, International Monetary Fund, KPMG, “, Federal, British, Bank of England, Bank of, Japan, Federal Reserve Locations: United States, Japan, United Kingdom, U.S, Government, Americas, Washington, Europe, Ukraine, China

☆ Blame inflation if you're still helping your adult kids pay their bills, says 'Shark Tank' investor Kevin O'Leary
▼ + stars: | 2024-02-08 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewMany young Americans are hitting up their parents for cash because they can't afford the basics following historic inflation, Kevin O'Leary said. A recent Pew survey found that 59% of parents with children aged 18 to 34 said they helped their kids financially. The O'Leary Ventures chairman, nicknamed "Mr Wonderful," underlined the painful impact of historic inflation in recent years. "This has been a particularly tough jolt" for young Americans over the last three years, O'Leary said.

Persons: —, Kevin O'Leary, O'Leary, " O'Leary, Chris Kempczinski, they've, they're Organizations: Service, Business, Fox News, O'Leary Ventures Locations: America

☆ Chipotle says California customers will soon be paying more for their burritos
▼ + stars: | 2024-02-08 | by ( Grace Dean | ) www.businessinsider.com time to read: +3 min

Chipotle customers in California should brace themselves for higher menu prices this year. The law will put fast-food workers' wages up to $20 an hour from April. Minimum wages for California fast-food workers will increase to $20 an hour in April under a law signed by Gov. The new legislation, known as AB 1228, won't just bring a wage increase in April. Chipotle, which has roughly 115,000 workers, spent $2.44 billion on labor in 2023, up about 11% from the previous year.

Persons: Chipotle's, —, Jack Hartung, Gavin Newsom, Hartung, Laurie Schalow, Chipotle, Chris Kempczinski, Brian Niccol Organizations: Service, Gov Locations: California, —

☆ Taco Bell says that low-income customers are still flocking to its restaurants even as other fast-food chains say they're struggling to hold on to them
▼ + stars: | 2024-02-08 | by ( Grace Dean | ) www.businessinsider.com time to read: +3 min

Read previewTaco Bell says that it is still performing well among low-income customers even as other fast-food chains say they're struggling to keep hold of this demographic. Brands, said that the taco and burrito chain's restaurants in low-income trade areas in the US had outperformed the rest of the business. Diners shouldn't expect Taco Bell to raise menu prices as much in 2024, he said. Record numbers of Taco Bell customers ordered digitallyThough Yum! Taco Bell had more than 8,500 restaurants globally by the end of 2023.

Persons: —, Bell, David Gibbs, Gibbs, Taco, it's, McDonald's, Chris Kempczinski, Taco Bell Organizations: Service, Brands, taco, Business, Taco Bell, Bell, KFC, Taco Locations: Bell's, Taco Bell's

☆ McDonald's says its price hikes are putting off some customers
▼ + stars: | 2024-02-07 | by ( Grace Dean | ) www.businessinsider.com time to read: +3 min

AdvertisementMcDonald's keeps putting up menu prices — and it's putting off some diners. McDonald's had said at its earnings call in October that its price increases largely hadn't put customers off. But as inflation cools, customers should expect less dramatic price hikes this year, Borden said, adding that franchisees set their own prices. "Where you see the pressure with the US consumer is that low-income consumer," Kempczinski said. Advertisement"The battleground is certainly with that low-income consumer," Kempczinski said.

Persons: McDonald's, Execs, —, Ian Borden, Chris Kempczinski, Borden, Kempczinski Organizations: Service, Bureau of Labor Statistics

☆ McDonald’s pushed customers to the brink on price. They’re starting to push back
▼ + stars: | 2024-02-06 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

At McDonald’s, which has repeatedly boasted about its ability to raise menu prices without denting sales, executives are finally acknowledging that customers need a break. But his focus on affordability marked a shift from just a few months ago, when he boasted that US menu prices, which went up as much as 10% in 2023 alone, weren’t deterring sales. On TikTok, it’s a common refrain for McDonald’s customers to say the company has gone too far, charging more than $3 for a single hash brown in some locations. Still, up until recently, McDonald’s found most customers were still willing to pay. Kempczinski said McDonald’s would double down on its “D123” strategy, which prices some items between $1 and $3.

Persons: Chris Kempczinski, Kempczinski, didn’t, ”, McDonald’s, y’all y’all, “ we’re, “ Organizations: New, New York CNN — Corporate Locations: New York, Darien , Connecticut, United States, Darien, America, Des Moines

☆ McDonald's says its chicken options are now just as popular as beef
▼ + stars: | 2024-02-06 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

McDonald's makes as much money from chicken products as from beef burgers, its CEO said Monday. McDonald's told investors in December that it planned to offer the McCrispy in almost all its markets globally by the end of 2025. We've also added smoked chicken wings, and that was a direct response to Gen Z." Taco Bell's former CEO Mark King told Bloomberg that its Gen Z customers were increasingly opting for chicken over beef. Wendy's told BI that its Spicy Chicken Nuggets were especially popular among Gen Zers.

Persons: McDonald's, Chris Kempczinski, —, Ian Borden, Kempczinski, McSpicy, Chick, Laura Dickey, we've, hasn't, We've, Gen, Taco, Mark King, Wendy's, Zers Organizations: Service, KFC, Gen, Bloomberg, Morning Locations: Singapore

☆ People in California will soon be paying more for Chipotle, McDonald's, and other fast-food
▼ + stars: | 2024-02-06 | by ( Ana Altchek | ) www.businessinsider.com time to read: +4 min

To compensate for the extra cost of labor, restaurants like McDonald's, Chipotle, and Jack In the Box plan to raise menu prices at their California stores. AdvertisementIn an October earnings call, McDonald's CEO Chris Kempczinski said that menu prices would increase in California, but didn't say which items or by how much. Kempczinski said in the call that the company would be using the wage increase as an opportunity to gain on its competitors. This will be the fifth time the company has raised menu prices in the last two years. Pizza Hut cut its in-house delivery program, eliminating 1,200 delivery workers to prepare for the pay increase.

Persons: —, Jack, Chris Kempczinski, Kempczinski, McDonald's, Chipotle, Jeff Hanscom, Hanscom Organizations: Service, National Owners Association, Street Journal, Wall, International Franchise Association Locations: California, Chipotle

☆ Cramer says the 'bifurcated consumer' is making this market hard to understand
▼ + stars: | 2024-02-05 | by ( Julie Coleman | ) www.cnbc.com time to read: +2 min

CNBC's Jim Cramer on Monday told investors why it's hard to generalize about consumer behavior, saying that as inflation continues, there's a stark divide between cash-strapped consumers and ones that are flush. "High rates may not be helping, but they aren't hurting yet either, right now at least," he said. "In the meantime, we've got a bifurcated consumer in this country, and until you understand that, nothing in this market will make sense at all, let alone the inequality that comes with it." Cramer took McDonald's mixed earnings report as an example of the consumer divide. The fast-food giant's CEO Chris Kempczinski discussed how the low-income consumer cohort is a "battle ground" as many trade down to deal with higher costs.

Persons: CNBC's Jim Cramer, we've, Cramer, Chris Kempczinski, Taylor Organizations: Federal, Apple Vision, Costco, Walmart Locations: United States

Customers in the Middle East were angered after McDonald’s Israel – which is operated by a local franchisee -- announced in October it was providing free meals to Israeli soldiers. Last month, McDonald’s President and CEO Chris Kempczinski warned that “misinformation” in the Middle East and elsewhere was hurting sales. Photos You Should See View All 45 ImagesIt was an unexpected end to an otherwise strong year for the burger giant, which said global sale-store sales rose 9% in 2023. Starbucks said last week that it faced boycotts in the Middle East and elsewhere because of its perceived support for Israel. McDonald’s revenue rose 8% to $6.4 billion in the fourth quarter, meeting analystexpectations.

Persons: McDonald’s Israel, Chris Kempczinski, McDonald’s, ” Kempczinski Organizations: FactSet, Starbucks, Israel, McDonald’s Corp Locations: Gaza, McDonald’s Oman

☆ McDonald’s says Middle East turmoil is hurting its business
▼ + stars: | 2024-02-05 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +3 min

New York CNN —McDonald’s said growing tensions in the Middle East have hurt its business. The Middle East doesn’t make up a huge part of its overall business. McDonald’s noted that it provided an insignificant amount of financial assistance for franchisees impacted by the war in the Middle East. That was far worse than the more-than 4% growth in the United States and other international businesses. Many McDonald’s operators in the region quickly distanced themselves from the Israeli operator’s actions.

Persons: New York CNN — McDonald’s, McDonald’s, McDonald’s Israel, Chris Kempczinski, ” Organizations: New, New York CNN, East, Hamas, Starbucks Locations: New York, East, United States, Israel, Kuwait, Pakistan

☆ The world is turning on American fast food, from McDonald's to Starbucks, amid Middle East unrest
▼ + stars: | 2024-02-05 | by ( Alex Bitter | ) www.businessinsider.com time to read: +2 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. "The most pronounced impact that we're seeing is in the Middle East and in Muslim countries like Indonesia and Malaysia," CEO Chris Kempczinski said on McDonald's earnings call on Monday. Sales in countries with significant Muslim minority populations, such as France, were also affected by the boycotts, Kempczinski said. McDonald's said it gave the Israel Defense Forces "tens of thousands" of free meals in the days after the conflict began. Advertisement"We do not expect to see meaningful improvement until there is a resolution in the Middle East," McDonald's CFO Ian Borden said during the call.

Persons: —, Chris Kempczinski, Kempczinski, McDonald's, Israel —, Domino's, Ian Borden Organizations: Service, McDonald's, Reuters, Business, Israel, Starbucks, Israel Defense Forces Locations: Gaza, Indonesia, Malaysia, France, Israel

☆ McDonald's and Starbucks blame the Israel-Hamas war for slower sales — and the recovery might take a while
▼ + stars: | 2024-02-05 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

McDonald's and Starbucks , two of the biggest U.S. restaurant companies, both said the Israel-Hamas war hurt their sales at the end of last year. Shares of McDonald's fell 4% in morning trading Monday, several hours after it reported that a sales slowdown in the Middle East contributed to its fourth-quarter revenue miss. Starbucks CEO Laxman Narasimhan said Tuesday that the company's sales in the Middle East struggled, but boycotts also hurt its U.S. cafes. Unlike Starbucks, McDonald's did not note any effect on its U.S. sales. Yum Brands is scheduled to report its quarterly results on Wednesday, while Restaurant Brands is slated to share its earnings on Feb. 13.

Persons: Laxman Narasimhan, McDonald's, Cowen, Andrew Charles, Chris Kempczinski, Kempczinski, Papa John's, Burger Organizations: U.S, Starbucks, Starbucks Workers, Workers United, McDonald's, Yum Brands, Restaurant Brands, CNBC PRO Locations: Tel Aviv, Israel, Gaza, Malaysia, Indonesia, France, Europe

☆ McDonald's investor day is Wednesday. Expect to hear about expansion, tech and China
▼ + stars: | 2023-12-05 | by ( Amelia Lucas | ) www.cnbc.com time to read: +5 min

The company also projected mid-single-digit sales growth in 2021 and 2022. McDonalds is a multinational fast food chain with thousands or restaurants over the world with headquarters in Chicago Illinois. It is the world's largest fast food restaurant chain famous for the burgers and fries. While the U.S. may seem saturated with McDonald's locations, executives have said that its current footprint doesn't reflect where consumers currently live, including the shift to the South and Southeast. Some McDonald's locations have also tested using artificial intelligence to take drive-thru orders.

Persons: Luke Sharrett, McDonald's, aren't, Chris Kempczinski, Nicolas Economou, remodels, Kempczinski Organizations: McDonald's Corp, Bloomberg, Getty, Wall Street, McDonalds, Nurphoto, Technology Locations: Louisville , Kentucky, U.S, New York City, USA, Chicago Illinois, Manhattan , New York, Texas, Canada, Germany, Australia, France, China

☆ Should a company rate its staff? A former Amazon exec says 'stack ranking' is useful when done right
▼ + stars: | 2023-12-05 | by ( Lucy Handley | ) www.cnbc.com time to read: +6 min

What is 'stack ranking?' "Stack ranking" is an employee rating system popularized by executive Jack Welch in the 1980s during his time as CEO of GE. Does stack ranking work? And in many cases, having a stack ranking system is actually helpful, because there's an objective, collaborative process to evaluating employees," he said. Why is stack ranking controversial?

Persons: —, Alykhan Sunderji, Sunder, Jack Welch, Sunderji, Banks, Goldman Sachs, McDonald's, Chris Kempczinski Organizations: Amazon, CNBC, GE, Amazon Pay, Google, Microsoft, Origin, New York Times

☆ Fast food isn't cheap anymore
▼ + stars: | 2023-11-27 | by ( Nancy Luna | ) www.businessinsider.com time to read: +6 min

McDonald's menu prices are up about 10% this year. AdvertisementInflation may be slowing, but when it comes to skyrocketing fast-food prices, the damage is done — and there's no turning back. The Bureau of Labor Statistics reported that fast-food prices in October jumped 6.2% over the past 12 months. Nancy Luna/Business InsiderMore price hikes are on the horizonChipotle recently raised menu prices by 3% in October. Some are fuming over skyrocketing fast-food prices and expressing their concern on social-media platforms such as TikTok and Reddit .

Persons: That's, Chipotle, —, Tim Powell, Mark Kalinowski, Nancy Luna, McDonald's, Kalinowski, Chris Kempczinski, @xconmedia, Ian Borden, Borden Organizations: Service, Starbucks, Labor Statistics Locations: QSRs, California, Orange , California, Connecticut

☆ We just got a first look at McDonald's secretive new spinoff restaurant CosMc's
▼ + stars: | 2023-11-27 | by ( Gloria Dawson | ) www.businessinsider.com time to read: +2 min

McDonald's has been reluctant to share many details about its planned new restaurant concept CosMc's. AdvertisementWe know just a bit more about CosMc's, McDonald's super-secret new restaurant concept based on an obscure McDonaldland character from the late '80s. Scott FredricksonA Google Maps search indicates the building is a former Boston Market restaurant that is indeed next door to a McDonald's. CosMc's on Google Maps Google MapsScott Fredrickson posted a few photos of the building's exterior on Facebook. The building appears to have a blue exterior and the CosMc's sign logo has a retro feel.

Persons: McDonald's, —, Chris Kempczinski, TikToker Snackloator, Snackloator, Scott Fredrickson, CosMc's Organizations: Service, Google, Boston Market, Facebook Locations: Bolingbrook , Illinois, CosMc's, Boston

The deal to acquire investment firm Carlyle's (CG.O) 28% holding in the burger chain's China business, which also includes its stores in Hong Kong and Macau, will see McDonald's stake rise to 48%. Since 2017, the number of McDonald's stores in China has doubled to 5,500 and the country has become its second-largest market. McDonald's made an unsolicited offer for Carlyle's stake in the China operations in recent weeks and the deal was struck quickly, said the sources. Reuters reported in August that Trustar Capital was planning to raise a continuation fund that would allow the Chinese private equity firm to sell down its stake in McDonald's China. In contrast to McDonald's, U.S. meat and processed food maker Tyson Foods (TSN.N) plans to sell its China poultry business, sources have said.

Persons: Benoit Tessier, Chris Kempczinski, McDonald's, Carlyle, Trustar, Jim Sanderson, Reckitt, Kane Wu, Granth, Deborah Sophia, Roxanne Liu, Edwina Gibbs Organizations: REUTERS, HK, CITIC, Trustar, Northcoast Research, Reuters, Tyson Foods, Primavera Capital, Thomson Locations: Bretigny, Paris, France, China, Hong Kong, Macau, CITIC, U.S, McDonald's China, British, Bengaluru, Beijing

☆ McDonald’s is investing more in China to tap ‘tremendous opportunity’
▼ + stars: | 2023-11-21 | by ( ) edition.cnn.com time to read: +2 min

McDonald’s has struck a deal to ramp up its stake in its China business to just under 50% and expressed confidence in its growth prospects in the world’s second-largest economy. The deal to acquire investment firm Carlyle’s 28% holding in the burger chain’s China business, which also includes stores in Hong Kong and Macau, will see McDonald’s stake rise to 48%. Since 2017, the number of McDonald’s stores in China has doubled to 5,500 and the country has become its second-largest market. In contrast to McDonald’s, US meat and processed food maker Tyson Foods plans to sell its China poultry business, sources have said. British consumer goods maker Reckitt Benckiser in 2021 sold its China infant formula and child nutrition business to investment firm Primavera Capital.

Persons: McDonald’s, “, ”, Chris Kempczinski, Carlyle, Trustar, Jim Sanderson, Benckiser Organizations: Northcoast Research, Tyson Foods, Primavera Capital Locations: China, Hong Kong, Macau, CITIC, British

☆ The hot word for CEOs on earnings calls is 'choiceful'
▼ + stars: | 2023-11-20 | by ( Amelia Lucas | ) www.cnbc.com time to read: +4 min

So far in 2023, choiceful has appeared in 15 quarterly earnings calls for S&P 500 companies, according to a CNBC analysis of FactSet transcripts. In 2021, only the CEOs of Molson Coors and McCormick said "choiceful" when speaking to investors on their quarterly conference calls. But the Oxford English Dictionary notes the earliest known use of the word in the late 1500s. These days, CEOs have used it to describe a consumer whose behavior has changed over the last two years. That's where "choiceful" comes in handy again.

Persons: Doug McMillon, choiceful, That's, McCormick, Laxman Narasimhan, it's, Ralph Lauren, Patrice Louvet, Molson Coors, Gavin Hattersley, we've, McDonald's Kempczinski Organizations: Walmart Inc . Corporation, Automation, Innovation, CNBC, Molson Coors, Webster, Oxford English, Consumers Locations: Washington , DC, Merriam, McDonald's

The McDonald's company logo stands on a sign outside a restaurant in Bretigny-sur-Orge, near Paris, France, July 30, 2020. REUTERS/Benoit Tessier/File Photo Acquire Licensing RightsNov 20 (Reuters) - McDonald's (MCD.N) said on Monday it would acquire investment firm Carlyle's (CG.O) 28% stake in a partnership that manages its business in mainland China, Hong Kong and Macau, as the burger chain looks to simplify its structure in the region. Reuters reported in April that Carlyle was discussing various options with financial advisers for its stake in McDonald's China, including setting up a continuation fund for the asset. There was "no better time to simplify our structure" given the benefits of China's long-term potential, McDonald's CEO Chris Kempczinski said. Reuters reported in August that Trustar Capital, formerly known as CITIC Capital, was also planning to raise a continuation fund that would allow the Chinese private equity firm to sell down its stake in McDonald's China.

Persons: Benoit Tessier, Carlyle, Chris Kempczinski, Jim Sanderson, Granth, Deborah Sophia, Anil D'Silva, Shounak Dasgupta, Shweta Agarwal Organizations: REUTERS, CITIC, HK, Reuters, CITIC Ltd, Northcoast, Thomson Locations: Bretigny, Paris, France, China, Hong Kong, Macau, McDonald's China, Bengaluru

☆ McDonald's increases its minority stake in China business
▼ + stars: | 2023-11-20 | by ( Amelia Lucas | ) www.cnbc.com time to read: +1 min

Customers wait for their takeout food outside a McDonald's restaurant during the May Day holiday on May 1, 2022 in Beijing, China. McDonald's is buying Carlyle's stake in its China business, increasing its minority share from 20% to 48% ownership. The fast-food giant sold off control of its restaurants in mainland China, Hong Kong and Macau in 2017 for $2.1 billion. At that time, Citic, a state-owned investment firm, took the majority stake, while private equity giant Carlyle bought a 28% stake. Citic still retains its 52% stake in the business.

Persons: Carlyle, McDonald's, Citic, Chris Kempczinski Locations: Beijing, China, Hong Kong, Macau

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