One of the largest suppliers of fries to McDonald’s announced the layoff of 400 employees in Washington state, due to a difficult environment for fast food, according to CNN.
Last week, Lamb Weston clarified that this news affects 4% of its workforce. The company’s stock is down 35% since the start of the year.
The number of customers at U.S. fast food chains fell 2% last quarter and 3% the previous quarter compared to the same period in 2023, according to Lamb Weston.
This has consequences. The company would find itself in a situation of overproduction, while 80% of fries consumed in the United States come from fast food. However, due to the increase in prices in restaurants, fewer customers would be able to enjoy themselves at McDonald’s.
Remember that the American giant has launched a $5 meal in the United States. The offer includes a McDouble cheeseburger or a McChicken sandwich, fries, croquettes and a small soft drink.
McDonald’s accounts for 13% of Lamb Weston’s sales. The restaurant chain’s decision did not help the French fry producer, according to its CEO, Thomas Werner.
“Several of these promotional offers encourage consumers to upgrade from a medium fry to a small fry,” he said last week.
McDonald’s sales fell 0.7% last quarter compared to the same period.
