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McDonald's Faces 16% Sales Drop Amid Wage Hike

5/7/2025

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Summary

Story summary

McDonald's CEO reports a 16% sales decline linked to California's $20/hour minimum wage increase.
Staff numbers decreased from 413 to 384, yet employee retention improved, reducing turnover from 85% to 40%.
New promotions, such as the $5 meal deal, target budget-conscious customers.
Franchise owners express concerns over potential operational cost increases and business closures with further wage hikes.

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Story summary

McDonald's CEO reports a 16% sales decline linked to California's $20/hour minimum wage increase.
Staff numbers decreased from 413 to 384, yet employee retention improved, reducing turnover from 85% to 40%.
New promotions, such as the $5 meal deal, target budget-conscious customers.
Franchise owners express concerns over potential operational cost increases and business closures with further wage hikes.