ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Prices at California Chipotle, McDonald's and other fast-food chains are rising following minimum wage hike

Prices at Chipotle, McDonald's and other fast-food giants in California are rising after a minimum wage hike went into effect in the state.

Prices at Chipotle, McDonald's and other fast-food giants in California are rising after a minimum wage hike went into effect. 

"Chipotle said in an investor call Wednesday that prices at its nearly 500 California restaurants climbed 6% to 7% during the first week of April compared with last year, playing out across its menu," The Wall Street Journal reported Sunday. 

"The state isn't making it easy," Chipotle Chief Executive Brian Niccol reportedly said. 

CALIFORNIA'S $20 MINIMUM WAGE FOR FAST-FOOD WORKERS GOES INTO EFFECT

"I feel ripped off a little," Greg LaVay said of rising prices at McDonald's. 

Prices for Chick-fil-A in Los Angeles are also putting the squeeze on customers. 

"The price for a spicy chicken sandwich at that location had gone up to $7.09 from $6.29, or 13%, since mid-February, according to research by Gordon Haskett Research Advisors," The Journal revealed. "Chick-fil-A's prices increased 10.6% on average in California during that time period, Gordon Haskett found."

California's new law boosting the minimum wage for fast-food workers in the state to $20 an hour went into effect on April 1, impacting restaurants that have at least 60 locations nationwide, except those that make and sell their own bread.

Gov. Gavin Newsom signed the legislation, AB 1228, into law in September.

The overall minimum wage for other workers in California is $15.50 an hour, among the highest of any state. The federal minimum wage, which has remained unchanged since 2009, is $7.25 an hour, or $15,080 a year for an employee working 40 hours a week.

CALIFORNIA FOOD CHAINS LAYING OFF WORKERS AHEAD OF NEW MINIMUM WAGE LAW

Other companies, including Chick-fil-A, Domino's, Burger King, Pizza Hut, and Jack in the Box have also raised prices since September, The Journal reported. 

Chipotle, McDonald's and Gov. Newsom's office did not respond to a request for comment from Fox News Digital

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Fox Business' Breck Dumas contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.