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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
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 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
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
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
The founders of struggling space company Astra have offered to take the company private at a value of about $30 million, according to a securities filing Thursday. That price is a 103% premium to Wednesday's closing price of 74 cents a share, which represents a market value of about $16 million. "We believe that Astra's strategic objectives and business prospects will be best served as a private company. Kemp and London are also "open to certain accredited investor stockholders of the Company rolling their equity into the transaction." The company is running out of cash, with its acquired spacecraft propulsion business yet to drive meaningful quarterly revenue.
Persons: Chris Kemp, Adam London, " Kemp, Kemp Organizations: Astra, San, Company, London, CNBC PRO Locations: San Francisco Bay, Alameda , California, London
Persistent inflationary pressures have led to depressed levels of consumer spending all year, according to Bank of America. Consumers are still spending — in fact, they're spending more than they are earning — as employment levels and hourly wage growth remain fairly strong . Some analysts see an opportunity to pick up shares of battered-down retail stocks. According to Barclay's Yih, spending levels "almost have to be worse" next year. LPL's Roach similarly expects consumers spending to hit a roadblock in the coming months.
Persons: bode, Neuberger Berman, Steve Eisman, Jeffrey Roach, Adrienne Yih, Yih, Randy Hare, Ross, Polly Wong, Belardi Wong, James Lewis, Huntington's Hare, Bartlett, Chris Kempczinski, Lewis, , it's, Anthony Chukumba, Chukumba, Wells, Ike Boruchow, Kathleen Entwistle, Entwistle, LPL's Roach, Morgan Stanley's Entwistle, Barclay's Yih, Roach Organizations: Bank of America, CNBC, Consumers, Barclays, Ross, Huntington National Bank, Bartlett Wealth Management, Walmart, Retailers, Republic, Urban Outfitters, Eagle Outfitters, National, Capital, National Vision, Nike, Ross Stores, Morgan Stanley Private Wealth Management, Investments, Citizens JMP Securities, Delta Air Lines, Deutsche Bank Locations: U.S, Wells Fargo
Taco Bell hasn't been hurt by customers trading down. Bing Guan/Bloomberg/Getty ImagesAt Taco Bell, customers can buy a combo meal, including a fountain drink, burrito, taco and cinnamon twists for dessert, for about $5. Taco Bell’s website shows a cheesy bean and rice burrito; spicy potato soft taco; and cheesy roll-up available for $1 each. And in the third quarter, customers didn’t only go for the cheapest items, helping keep the Taco Bell’s margins high. Taco Bell is also benefiting from people searching for less expensive food options, Gibbs said.
Persons: it’s, Taco Bell, , David Gibbs, Bing Guan, Gibbs, Michael Skipworth, Ian Borden, “ We’ve, Chris Kempczinski, ” Kempczinski, Denny’s, Robert Verostek Organizations: New, New York CNN, Taco Bell, Yum Brands, KFC, Taco Bell’s, Bloomberg, Getty, Bell, Bell’s, Taco Locations: New York, Bell’s, McDonald’s
McDonald's and Chipotle Mexican Grill will raise their menu prices in California next year to offset the state's minimum wage increase for fast-food workers, executives said as both chains announced quarterly earnings in recent days. McDonald's has not decided how much it will hike prices in California as workers' wages rise to $20 an hour, CEO Chris Kempczinski said Monday. Restaurants have been hiking menu prices for more than two years in response to rising ingredient and labor costs. Unlike Chipotle, which owns the overwhelming majority of its locations, most of McDonald's California locations are run by franchisees. "We believe we're in a better position than our competitors to weather this, so let's use this as an opportunity to actually accelerate our growth in California," Kempczinski said.
Persons: McDonald's, Chris Kempczinski, Chipotle, Jack Hartung, Hartung, Kempczinski Organizations: U.S . Bureau of Labor Statistics, McDonald's, National Owners Association, U.S, CNBC Locations: California, McDonald's, McDonald's California, McDonald's U.S
Subway CEO John Chidsey told the WSJ he eats at the chain three times a week. His favourite sandwiches are the Turkey Cali Club and its controversial tuna sub. John Chidsey, who's served as CEO of the sandwich chain since 2019, eats there about three times a week, he told The Wall Street Journal. Chidsey told The Journal that his favorite sandwich on Subway's menu is the Turkey Cali Club, which is made with turkey, bacon, mozzarella, smashed avocado, and salad and released as part of its menu overhaul. He told CNN in 2021 that his other favorite sub from the chain was its controversial tuna sandwich.
Persons: John Chidsey, , who's, Chidsey, Fries, Chris Kempczinski, Andrew Puzder, Carl's Jr, Greg Brenneman Organizations: Turkey Cali Club, Service, Wall Street, CNN, Burger King Locations: Turkey, Miami
New York CNN —For the first time in about 30 years, McDonald’s is increasing its royalty fee for new franchise operators in the US and Canada. Franchises are a key part of McDonald’s business, with roughly 95% of all McDonald’s locations operated by franchise operators. Operators pay a royalty rate to use McDonald’s brand and for access to its expertise. In 2018, McDonald’s franchise operators formed their first-ever advocacy group, the National Owners Association. And while other chains struggle to bring more customers into restaurant locations, McDonald’s is reporting growth in US traffic.
Persons: , Justin Sullivan, Joe Erlinger, We’re, Chris Kempczinski, Ian Borden Organizations: New, New York CNN, Getty Images Company, CNN, National Owners Association Locations: New York, Canada
New York CNN —McDonald’s is getting rid of one its biggest perks. The fast food chain is eliminating its self-serve soda machines by 2032 at its US restaurants, the company said, explaining that the change is will make the experience consistent for customers and crew across the chain. For decades, McDonald’s let customers fill (and refill) their own drinks at its dining rooms. McDonald’s future includes restaurant designs with smaller or no dining rooms (and high-tech drive thrus) to reflect that new reality. The chain also recently teased another major change, called “CosMc’s,” a new small-format location that includes a reduced dining area.
Persons: New York CNN — McDonald’s, Uber, Chris Kempczinski, hasn’t, Taco Organizations: New, New York CNN, , Taco Bell, Starbucks Locations: New York
Jenkins denied a motion by McDonald's and Kempczinski to dismiss Peaster's race discrimination and retaliation claims. The judge did dismiss claims that McDonald's had created a hostile work environment and intentionally caused Peaster emotional distress. Carmen Caruso, a lawyer for Peaster, said he looks forward to bringing the surviving claims to trial. At a 2021 meeting at McDonald's corporate headquarters, Peaster, the company's vice president of global safety, security, and intelligence, said Kempczinski's response to the incident had been insufficient. Peaster claims that following the meeting, Kempczinski and other executives retaliated against him by refusing to meet with him and making it impossible for him to do his job.
Persons: Chris Kempczinski, District Judge Linsday Jenkins, Michael Peaster, Peaster, Jenkins, Kempczinski, McDonald's, Carmen Caruso, Lori Lightfoot, Daniel Wiessner, Alexia Garamfalvi, Bill Berkrot Organizations: McDonald's, McDonald's Corp, District, Chicago, Peaster, Thomson Locations: Chicago, U.S, Albany , New York
In this article CMGMCDWENPZZA Follow your favorite stocks CREATE FREE ACCOUNTA McDonald's restaurant near Times Square, NYC on July 29th, 2023. Adam Jeffery | CNBCRestaurant companies navigating some of the same challenges in the second quarter fell into two categories: winners and losers. While most restaurant companies crushed earnings expectations, a number of them fell short of Wall Street's estimates for their quarterly revenue. McDonald's and Wingstop both reported second-quarter earnings, revenue and same-store sales growth that topped analysts' expectations, a rarity this quarter for restaurant companies. One fast-casual chain has struggled with consumers' value perception.
Persons: Adam Jeffery, hasn't, Papa John's, TD Cowen, Andrew Charles, Burger, Wendy's, Jeffrey Bernstein, bode, Chris Kempczinski, Todd Penegor, Wingstop, Michael Skipworth, Chipotle, Jack Hartung, Noodles Organizations: CNBC Restaurant, Promotions, Investors, CNBC, Restaurant Brands, Barclays, Company Locations: NYC, Chipotle, Texas
REUTERS/Mike Blake/File PhotoWASHINGTON, Aug 15 (Reuters) - U.S. space startups have slashed workforces and restructured operations to survive amid an investment drought that has grounded once-lofty aspirations. Those struggles follow the April bankruptcy filing by satellite launch firm Virgin Orbit, which was owned by billionaire Richard Branson. "The focus for investors in this space is very different than what it was a couple years ago. The financial headwinds faced by rocket startups have triggered pain elsewhere as well. It shifted much of its focus to government defense programs as its commercial customers face tight capital markets, CEO Laurienti said.
Persons: Mike Blake, Jeff Bezos, Richard Branson, Joe Laurienti, Caleb Henry, Chris Kemp, Will Marshall, Quilty's Henry, Laurienti, Joey Roulette, Ben Klayman, Matthew Lewis Organizations: REUTERS, Elon, SpaceX, Astra, Labs, Ursa, Reuters, Planet Labs, Thomson Locations: Long Beach , California, U.S, Denver, Washington
Now, over three years later, the restaurant industry is back. In the early days of the pandemic, people got used to eating their restaurant food at home. Too many jobs, too few workersEarly in the pandemic, many restaurant workers got laid off. Now, over three years since the pandemic hit the US, some restaurant jobs remain unfilled. But many of these have at the same time vehemently opposed proposed legislation that could raise the minimum wage for fast food workers.
Persons: Anderson Cooper, Bobby Flay, Esther Choi’s, we’re, ” Choi, Mŏkbar, , Choi, Esther Choi, Masaharu Morimoto, Roy Rochlin, Joe Pawlak, Carbone, Covid, Chris Kempczinski, Taco, Spencer Platt, , Uber, Doordash, Bonnie Morales, Leah Nash, Israel Morales, Flay, ” Donna, ” Pawlak Organizations: CNN, New, New York CNN, National Arts Club, Getty, National Restaurant Association, Washington Post, Bonnie Locations: New York, Manhattan, New York City, Israel, Kachka, Portland , Oregon, Portland
Astra is cutting about 70 employees, as well as reallocating about 50 personnel from its rocket development program over to its space products unit, which builds the company's spacecraft engines. Astra noted that it had 278 total orders for spacecraft engines, as of four months ago, worth about $77 million in contracts. In a separate filing Friday, Astra said it raised $10.8 million in net proceeds from selling debt to investment group High Trail Capital. Astra stock was little changed in after-hours trading Friday from its close at 38 cents a share. In Friday's filing, Astra said it hired PJT Partners as a financial advisor, with the company "focused on thoughtfully pursuing opportunities to raise additional capital."
Persons: Chris Kemp, It's, Riley, PJT Organizations: Astra, High, Capital, Systems, Roth Capital, PJT Partners
McDonald's customers are "trading down" to its value items and buying less, execs told investors. Some diners also appear to be switching to McDonald's from full-service restaurants, CEO Chris Kempczinski said. Customers are "trading down" from premium and higher-priced items to core and value items instead, CFO Ian Borden told investors on Thursday, without giving specific examples. Kempczinski told investors in April that fewer customers were ordering fries with their burgers as they cut back on spending. Some households on incomes under $100,000 also appear to be switching to McDonald's from full-service restaurants, Kempczinski said Thursday.
Persons: execs, Chris Kempczinski, Kempczinski, Ian Borden, Borden, Neil Saunders, McDonald's, Grimace Organizations: Service Locations: Wall, Silicon, McDonald's
Ronald McDonald, Grimace, and The Professor notice the vessel and Ronald McDonald knocks on it. He then proceeds to "trade" weird alien-looking objects, like a colorful lamp and a duck hat, for Ronald McDonald's skateboard and Grimace's headphones. But, smart-thinking Ronald McDonald uses his McMagnet to pull CosMc back, and the group decides to eat lunch together. In 1988, CosMc appears in another commercial, where CosMc takes Ronald McDonald on a tour through outer space. CosMc shows him a "fly-through" McDonald's restaurant that CosMc seems to have opened up on the moon.
Persons: McDonald's, Mcdonald's, Chris Kempczinski, Ronald McDonald, CosMc, Ronald McDonald's, I've, cheeseburgers, McDonald Organizations: Grimace, Service, Nintendo Locations: Wall, Silicon
In the United States, sales at McDonald’s locations open for at least 13 months jumped 10.3% in the quarter ending on June 30. Grimace’s birthday, and the kickoff date for the special meal and shake McDonald’s offered to celebrate, was on June 12. When McDonald’s introduced the special products for Grimace in early June, it wasn’t all about the shake. The Grimace Birthday Meal also came with McNuggets or a Big Mac and fries. “Grimace is the perfect lovable icon to have McDonald’s meet our fans at the intersection of nostalgia and culture.”But in TikTok videos where people wish Grimace a happy birthday before sampling the shake, Grimace is not presented as a lovable icon.
Persons: McDonald’s, , , Chris Kempczinski, ” Tariq Hassan, “ Grimace, Grimace, tweeting Organizations: New, New York CNN, McDonald’s, Plant Locations: New York, United States, China, Placer.ai
McDonald's on Thursday reported quarterly earnings and revenue that topped analysts' expectations as its China sales rebound and mascot Grimace drives U.S. visits. The company's global same-store sales climbed 11.7%, topping StreetAccount estimates of 9.2%. All three of McDonald's divisions reported double-digit growth for same-store sales. In the U.S., its largest market, same-store sales climbed 10.3%. McDonald's also reported that visits to its U.S. locations grew for the fourth consecutive quarter.
Persons: Grimace, Chris Kempczinski, McDonald's Organizations: Refinitiv Locations: San Pablo , California, McDonald's, China, U.S
McDonald's is creating a spinoff restaurant chain called CosMc's, executives said Thursday. "CosMc's is a small format concept with all the DNA of McDonald's, but with its own unique personality," McDonald's CEO Chris Kempczinski said. The name for the new brand comes from CosMc, a McDonaldland mascot who appeared in advertisements in the late 1980s and early 1990s. The brand will revive CosMc after the return of another McDonald's mascot, Grimace, jolted its U.S. business. "This quarter, if I'm being honest, the theme was Grimace," Kempczinski said.
Persons: Chris Kempczinski, McDonald's, CosMc, Grimace, Kempczinski, haven't Organizations: U.S, Boston Locations: CosMc, jolted
The chain announced plans to build a spinoff restaurant called CosMc's. The restaurant is named after a McDonaldland character named CosMc, the company told Insider. The new concept announcement comes as McDonald's steps up the pace of new restaurant openings this year. But the company is also focusing on modifying traditional restaurants to meet the digital demands of today's customers. He pointed to a carryout-only restaurant in Texas and a restaurant in China that uses food lockers.
Persons: Chris Kempczinski, Kempczinski, Ronald McDonald, Grimmace, McDonald's Organizations: Service Locations: Wall, Silicon, Canada, Europe, Texas, China
McDonald's is stopping its McCafé baked goods. The McCafé Bakery menu had three items: an apple fritter, blueberry muffin, and cinnamon roll. Since its launched the McCafé Bakery menu, some temporary items have been added to its lineup, including a cheese Danish and pull-apart doughnut. Some people have voiced their frustration about the decision on social media, though others have used it as an opportunity to express their dislike of the baked goods. But the removal of the McCafé Bakery items doesn't necessarily signal that the chain is giving up on regaining its breakfast share.
Persons: McDonald's, didn't, Chris Kempczinski Organizations: Service, CNN, Twitter Locations: Wall, Silicon, Indiana, Kentucky, California
More customers are opting to pick up their orders from restaurants to avoid high delivery fees. Online orders account for nearly half of Dickey's sales, and she said third-party delivery orders as a proportion of these were down by 6.8% over the past year. Free delivery directly from the Dickey's website now made up 6% of sales, up by a fifth over the past year, Dickey added. To get the same thing delivered via Pizzeria Uno's website, which outsources it to DoorDash, the total is $22.98, including a $7.75 delivery fee. Prices for a cheese and tomato pizza on Pizzeria Uno's site for delivery via Doordash, Grubhub, and for collection.
Persons: DoorDash, Uber, , Erik Frederick, , I'm, Laura Rea Dickey, Dickey, Steve Heeley, Chris Kempczinski, Uno's Frederick, We've, Kempczinski, Gunther Plosch Organizations: Uno, Service, US Bureau of Labor Statistics Locations: Dickey's, Revere , Massachusetts, Arizona , Colorado , Indiana, Texas
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