Business
McDonald’s $5 meal deal blamed for demise of french fry factory

Published
6 months agoon
By
Ekwutos BlogThe biggest french fry supplier to McDonald’s has blamed the chain’s $5 meal deal for its factory closure and job losses.
Lamb Weston, the largest producer of fries in North America, announced earlier this month that it is closing a factory in Washington and laying off nearly 400 employees.
Boss Thomas Werner said that demand for fries is falling because of smaller portion sizes included in discount deals. Burger King and Wendy’s have near-identical $5 meals too.
‘Many of these promotional meal deals have consumers trading down from a medium fry to a small fry,’ he said on an earnings call earlier this month.
McDonald’s initially launched its $5 value meal as a summer promotion in June, but has extended it to Christmas due to high demand from cash-strapped customers.
‘The extension of the $5 Meal Deal, and the other offerings we’re announcing for our fall line-up, are just a few of the ways we’re working hard to offer great meals at a fair price,’ Joe Erlinger, president of McDonald’s USA, said in September.
Erlinger confirmed that McDonald’s created the deal after he ‘zig-zagged the country’ and participated in focus groups with its customers.
‘They’ve felt the stress of the inflation over the last few years, and so this is a great opportunity for McDonald’s to bring them value,’ Erlinger said.
The meal consists of a McDouble or McChicken, a four-piece portion of chicken nuggets, a small drink, and – crucially – a small portion of fries.
‘Meal deals with smaller fries portions are certainly part of the problem,’ Neil Saunders, Managing Director of GlobalData Retail, told DailyMail.com.
‘Individually this doesn’t make much difference, but across the hundreds of millions of transactions within fast food this has a massive impact on volumes.
‘The other problem alongside this is people dining out less which is also impacting the volume of fries sold.’
McDonald’s is Lamb Weston’s largest customer, accounting for 13 percent of its sales, according to CNN.
As well as fully shutting down the Washington factory, Lamb Weston also announced it was temporarily cutting production at its other plants due to the slowing of customer demand.
Following several years of price rises, many fast food giants, including McDonald’s, have begun to offer value deals in a bid to win back customers.
McDonald’s suffered a surprise fall in sales in the April to June quarter, dragged down by fewer customers visiting the chain.

Around 80 percent of french fries consumed in the US come from fast-food chains, according to Lamb Weston

Following several years of price rises, many fast food giants, including McDonald’s, have begun to offer value deals in a bid to win back cash-strapped customers
It was the first sales decline since 2020, when the Covid-19 pandemic shuttered stores and millions stayed home.
According to Lamb Weston, around 80 percent of french fries consumed in the US come from fast-food chains – which means it is also exposed to declining foot fall at other restaurants.
Customer traffic to fast-food chains dropped 2 percent last quarter and 3 percent the previous quarter compared to the same time last year, the producer said.
It comes amid reports activist investor Jana Partners is pushing Lamb Weston to explore a sale.
Lamb Weston shares jumped around 8 percent in early trading on the news from The Wall Street Journal.
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Business
Dangote refinery, NNPC: More fuel stations increase pump price in Nigeria

Published
1 day agoon
April 4, 2025By
Ekwutos Blog
The price of Premium Motor Spirit, popularly known as fuel, has recorded a significant increase in the past days, which may worsen the economic hardship Nigerians face.
MRS, a filling station partner of Dangote Refinery, kicked off the latest fuel price increase when it adjusted its petrol pump to between N925 and N950 per litre in Lagos and the Federal Capital Territory, Abuja.
Similarly, other fuel marketers such as Empire Energy, Recoil, Juda Oil, Total, Emedab, and others also increased their fuel pump to between N950 and N970 per litre.
On Wednesday, the Nigerian National Petroleum Company Limited retail outlets also jacked up their fuel price to N950 per litre from N880 in Abuja.
Summarily, Ekwutosblog observed motorists will have to pay N70 more to buy a litre of petrol in the coming days.
The development comes amid the suspension of petrol product sales in Naira by Dangote Refinery. This follows the initiation of the naira-for-crude sale deal between Dangote Refinery and the federal government through NNPCL.
On Wednesday, President Bola Ahmed Tinubu announced a reshuffling of NNPCL.
Meanwhile, local oil prices are increasing in Nigeria, despite the decline in global crude prices. As of the time of this report, United States West Texas Intermediate was at $62.15 per barrel, down from above $65, while Brent crude stood at $65.42 per barrel, down from $72 last week.
Business
Global Billionaires’ Net Worth Plummets by $65 Billion Amid Market Downturn

Published
2 days agoon
April 4, 2025By
Ekwutos Blog
In a significant setback, the world’s wealthiest individuals collectively lost over $65 billion in net worth today, as key market sectors experienced a sharp downturn.
This decline affected prominent figures in technology, finance, and other industries, sending shockwaves through financial markets.
Ekwutosblog reports that the downturn occurs amidst cautious optimism that new US policies may not be as severe as initially feared.
However, the immediate impact has already been felt, leading to a decline in the net worth of billionaires such as Elon Musk, Warren Buffett, and Jeff Bezos, amongst others who have significant stakes in tech, finance, and other industries.
The global billionaire population has been growing, with over 2,850 individuals representing almost $15 trillion in wealth.
Despite this growth, the market downturn serves as a reminder of the volatility and risks associated with wealth concentration.
Business
Sterling Bank Makes History: Scraps Transfer Fees for Local Online Transactions, Earns Praise from Lawmakers, Including Mohammed Bello El-Rufai, and the Public

Published
2 days agoon
April 3, 2025By
Ekwutos Blog
Sterling Bank has taken a groundbreaking step to ease the financial burden on Nigerians by eliminating transfer fees and other charges for local online transactions.
This move is a significant stride towards financial inclusion and customer-centric banking, particularly during a time when economic pressures are high.
Ekwutosblog gathered that this initiative has been commended by Mohammed Bello El-Rufai, Chairman of the House Committee on Banking Regulations, who praised Sterling Bank’s commitment to creating a more accessible and equitable banking system.
El-Rufai encouraged other financial institutions to follow Sterling Bank’s example, emphasizing that a competitive banking sector prioritizing Nigerians’ interests will strengthen the economy and rebuild public trust in financial services.
Sterling Bank’s decision to scrap transfer fees is expected to benefit individuals and small business owners who frequently make online transactions. The bank’s customers can now perform local transfers via the mobile app without incurring any charges. Obinna Ukachukwu, Growth Executive at Sterling Bank, stated that access to one’s own money shouldn’t come with a penalty, highlighting the bank’s values-driven approach to customer-centric banking.
This move has sparked widespread public approval, with many calling on other banks to adopt similar policies.
As policymakers, El-Rufai reiterated their commitment to fostering a regulatory environment that encourages pro-customer initiatives while ensuring sustainability within the banking sector.

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