(AmericanProsperity.com) – As Bidenomics keeps squeezing American wallets, even McDonald’s french fries are feeling the heat.
A major supplier to the fast-food giant has been forced to shutter a factory and slash jobs, exposing the far-reaching consequences of the Biden-Harris administration’s runaway inflation and misguided economic policies.
Lamb Weston, McDonald’s’ largest french fries supplier in the United States, has announced it is cutting 375 jobs by closing its plant in Connell, Washington.
This drastic move comes as inflation-battered consumers are spending less on fast-food options, opting for smaller portions or skipping sides altogether.
Lamb Weston CEO Tom Werner did not shy away from discussing the root cause of this economic downturn.
“Restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025,” Werner stated during an earnings call.
This alarming development is not just about french fries; it is a symptom of a larger economic crisis gripping the nation.
As inflation continues to destroy Americans’ purchasing power, even a trip to McDonald’s has become impossible for many.
A recent survey found that a staggering 80% of Americans now view fast food as a “luxury” due to soaring prices.
The ripple effects of this economic downturn are clear. McDonald’s U.S. same-store sales dropped 0.7% last quarter compared to the previous year, while Lamb Weston’s shares have fallen nearly 35% this year.
The company’s financial health has taken a severe hit. Net sales declined 1%, income from operations dropped 34% and net income fell a whopping 46% compared to the previous year.
Adding insult to injury, California recently implemented a $20 minimum wage for fast-food workers, which has only made the problem worse.
The measure has driven menu prices even higher, making cash-strapped customers think twice about eating out.
Copyright 2024, AmericanProsperity.com
