The fast food leader perceives a growing problem in the Golden State.
may have beaten earnings estimates late in October, with revenue climbing over 14% year-over-year, but CEO Chris Kempczinski still has his doubts.
"The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers," he continued. In mid-October, the state of California enacted a new minimum wage law which will push the hourly rate to at least $16. This brings it up by $0.50 — the previous state standard had been $15.50 per hour, and will remain so until the bill goes into effect on Jan. 1, 2024.
A McDonald's store is seen on Oct. 30 in Austin, Texas. McDonald's third-quarter earnings surpassed Wall Street analysts' expectations, growing 8.8% in global same-store sales and 8.1% in U.S. same-store sales. Brandon Bell/Getty ImagesBut there's a catch. The law ensures all fast food workers — including those at McDonald's and the like — will be paid $20 per hour, effective April 1, 2024.