McDonald's CEO: California minimum wage hike driving labor inflation

McDonald's CEO, Chris Kempczinski, highlighted that the recent minimum wage increase in California is driving wage inflation across the U.S., with expectations of high single-digit labor inflation. This inflation is partly due to the new legislation requiring fast-food chains with over 60 locations to pay at least $20 per hour. As a result, several chains, including McDonald's, have raised their prices to manage increased costs. The industry is also facing challenges from more discerning consumer spending habits amidst rising prices, affecting overall quick service restaurant industry traffic and sales growth.