Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Facebook X (Twitter) Instagram
    Friday, June 6
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025

      Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

      May 15, 2025

      Hooters Declares Bankruptcy

      April 8, 2025

      Costco to Open 6 New U.S. Stores Next Month and Another in April—See the Locations and Dates

      February 28, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » McDonald’s French Fry Maker Abruptly Shuts Down Factory, Cuts Jobs in Unexpected Move
    Entrepreneur News

    McDonald’s French Fry Maker Abruptly Shuts Down Factory, Cuts Jobs in Unexpected Move

    BabatundeBy BabatundeOctober 11, 2024Updated:October 18, 20245 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Lamb Weston Promotional Flyer
    Lamb Weston EMEA/Facebook
    Share
    Facebook Twitter LinkedIn Pinterest Email

    A major McDonald’s french fry maker, Lamb Weston, shut down one of its production facilities in the first week of October. During an official announcement, the company explained that it could no longer sustain its operation costs and had to make difficult decisions. Most significant among the changes effected by Lamb Weston is the decision to cut its global workforce by 4%.

    Lamb Weston CEO Tom Werner explained, “We are also taking actions to reduce operating expenses, including reducing headcount and eliminating certain unfilled job positions, as well as reducing capital expenditures.” He also emphasized that the French fry maker will conveniently meet its supply quotas while training its sights on fiscal targets. 

    This development is a clear testament to the economic stresses that the fast food industry is undergoing. Lamb Weston’s recent closure of its Connell, Washington plant led to 375 job losses. 

    Diminishing Demand for Frozen Potatoes  

    In a statement following the downsizing, Werner mentioned that the continually waning demand for Lamb Weston’s product made the cuts inevitable. He, in fact, narrowed down the factory closure to a poor consumer price index (CPI) figure. 

    Frozen fries in Warsaw supermarket
    ulterior epicure/Flickr

    If the dramatic drop in supply were momentary, Lamb Weston would simply have tried to break even. However, Werner mentioned during his statement that they project the decline in demand to extend well into 2024. “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,” the CEO said.

    Lamb Weston is the largest producer of french fries in North America, which explains its ability to meet McDonald’s historic demands. However, the company is currently trying to “manage [its] factory utilization rates and ease some of the current supply-demand imbalance in North America.”

    ALSO READ: 7 Fast Food Chains That Always Use Frozen Burger Patties and 5 That Don’t

    Economic Challenges and Inflation Impact  

    All thanks to phenomenally rising national inflation, more and more families are falling previously categorized as middle class and are falling closer to the poverty line. The cost of living chart is on a sharp climb, rubbing off on almost every facet of livelihood. 

    For example, it now suffices for cash-strapped Americans to cook and eat at home rather than dining at a restaurant. So, fast food restaurants are seeing less and less traffic. Most consumers now know better to invest loose cash in visits to grocery stores, which are equally experiencing hikes in price, than a splash on fast food. 

    Higher prices, skimpier portions and apps
    BlankVerse/Reddit

    In summary, that is why your neighborhood, Wendy’s, is gradually being taken over by tumbleweed.   

    Lamb Weston’s Financial Decline 

    In addition to supplying McDonald’s and other fast-food outlets, Lamb Weston also has a fast-food concern of its own. Having this direct access to consumers helped the McDonald’s French fry maker remain price competitive. Likewise, the access helped Lamb Weston realize that the challenge is not a faulty supply chain but a flagging demand.

    So far, in 2024, Lamb Weston has experienced declines on multiple economic fronts. For example, the company’s stock price has declined by almost 35% in 2024 alone. 

    Building Live Brand Experiences
    Team Hoynck/Pinterest

    According to Lamb Weston’s Q1 financial report, the company’s net income dipped by 46% yearly. Similarly, the net income from the french fry supplier’s global operations declined by 34%. Also, net sales fell by 1%, all within 12 months.

     ALSO READ: McDonald’s Might Have to Leave California

    McDonald’s Sales Slump and Its Impact  

    On the one hand, fast food chains are trying to salvage the situation with diverse strategies. For example, McDonald’s now offers a $5 meal that comes with either a McChicken or McDouble, a mini fountain drink, a four-piece nugget, and a small pack of fries.

    Other fast food chains like Wendy’s and Burger King are following McDonald’s lead by offering similar deals. However, these deals equally come with small portions of fries. Werner argues that these special offers are partly responsible for the decline in frozen potato demand. 

    McDonald’s introduces a $5 value meal
    richardginn666/Reddit

    According to Werner, consumers who now visit fast food restaurants often choose the meal deal promo. Consequently, many of these customers end up settling for a smaller portion of fries than the medium sizes they would have ordered during off-promo seasons. 

    It is unsurprising that the Lamb Weston CEO is concerned about what deals McDonald’s offers customers. Operational challenges to McDonald’s would ripple off to the French fry maker, which is Lamb Weston’s largest customer.

    Unfortunately, McDonald’s has reported a decline in sales within the US since the beginning of 2024. In 2024 Q3, the Golden Arches company recorded a 0.7% decline in year-on-year sales. We can only wait and see how Lamb Webster and the fast-food restaurants ride out this economic wave.

    fast food Inflation layoffs McDonald’s
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous Article20 Halloween Fundraising Ideas
    Next Article How to Transfer a Car Loan to Another Person

    Related Posts

    Entrepreneur News

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025
    Entrepreneur News

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Entrepreneur News

    Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

    May 15, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.