McDonald's Move to Only Serve Cage-Free Eggs Makes Major Impact

The quick-serve giant McDonald's set a goal to serve only cage-free eggs by 2025. As the company gradually start to change its egg supply, this has made a significant impact on the farming industry and on the prices of cage-free eggs.

"The expected surge in demand has sparked barn upgrades across the country over the last several years, with producers building facilities that give hens a bit more space. This increase in supply is reducing cage-free eggs’ market premium over regular eggs," writes "Bloomberg.

Back in February, the cost of a dozen cage-free eggs was about 81 cents more than regular eggs. In 2017, cage-free eggs were double the cost of regular eggs at some retailers.

But due to McDonald's recent pledge, which has influenced other restaurants to follow-suit, the price of cage-free eggs have started to decrease as more suppliers are ramping up production to fulfill the demand.

The fast-food giant buys about 2 billion eggs a year in the U.S., which amounts to almost 2 percent of the country's annual production.

“The supply-and-demand equation will change such that pricing will go down,” said Marion Gross, head of supply chain at McDonald’s in the U.S. “More people will be able to afford cage-free eggs.”

McDonald's made the pledge to go cage-free at its 16,000 restaurants in the U.S. and Canada back in 2015 and so far, 30 percent of stores in Canada serve these eggs.

As mentioned before, McDonald's isn't the only company implementing this change.

"Walmart Inc. and General Mills Inc., are moving in the same direction as McDonald’s. Kraft Heinz Co. says 60 percent of its supply is cage-free or free-range globally, while General Mills reached 40 percent last year," writes "Bloomberg."

Burger King previously set the goal of being cage-free by 2017 but wasn't able to achieve it. The fast-food chain is now also aiming for 2025.

This is one of the many ways QSR brands are trying to compete with the fast casual segment. Last year, McDonald's launched a new Dollar menu too. Watch the On-Foodable Weekly below to learn more.

Which Restaurant Stocks are a Good or Bad Investment Come 2019?



When it comes to the stock market, analysts are always trying to make predictions that will pay off.

So what will 2019 bring when it comes to restaurant stocks?

According to a recent report from “Barron’s,” analysts are recommending that traders consider investing in restaurant brands with massive growth potential, instead of the stocks that are trading at low prices.   

“We favor companies with clear same-store sales drivers and are less focused on bargain-hunting in these later stages of the cycle, as it remains a challenging environment for turnarounds, especially in full-service,” writes the Investment Banking Firm Jefferies.

Analyst Andy Barish agrees and isn’t recommending purchasing any full-service restaurant stocks. He thinks Red Robin, in particular, is a poor investment.  

Interestingly, he recommends investing in Chipotle Mexican Grill, a restaurant chain that has been slowly trying to recover from its food safety crisis of 2015.

“Chipotle, which it thinks will continue to benefit from the work undertaken by new management to drive store traffic, grow the digital business, and boost efficiency while growing same-store sales around 6%. The stock was recently about flat near $441; Jefferies’ price target is $550,” writes “Barron’s.”

Then Barish also said that the QSR chains McDonald’s and Starbucks are other restaurant stocks that are poised to perform well on this market.  

Jefferies anticipates that same-store sales for McDonald’s will spike by 3 percent over the next two years. The firm also predicts that Starbucks shares will increase to $76 from the recent $65.

Barish mentions the threat of Amazon as a reason why restaurant stocks are more attractive versus retail stock.  

““We continue to expect premium valuations for the best performers, especially as [the] supply of investable restaurant equity diminishes further...and investors continue to see value in restaurants’ relatively stable trends versus retail, and insulation from risks around tariffs and [AMZN],” said Barish.

Read more about why these restaurant stocks are expected to have a great 2019 at “Barron’s” now.

However, as reported by Foodable Network, Amazon’s Whole Foods is already taking a bite out of the restaurant business. Then there are Amazon’s new Amazon Go casher-less stores, which have become very popular during the week during lunchtime hours due to its grab-and-go options.

In The Barron Report episode below, Host Paul Barron outlines some of the power players including Amazon and Uber Eats that are taking away customers and revenue from restaurants.  

The Fast Food Apocalypse is Here

The Fast Food Apocalypse is Here

It's no secret that several fast food chains that used to reign in the restaurant industry are now struggling to compete with the thousands on new innovative concepts offering guests an elevated experience, whether it be with the higher quality food product or dining experience. 

Even the quick-serve chain McDonald's, which has recently completed a brand revamp, said in a call last week that it's difficult to bring in customers due to the "market share fight." 

Yum Brands CEO Greg Creed expressed similar sentiments and also called the marketplace "very tough," after Taco Bell's new Nacho Fries didn't foster the sales they had hoped for. 

"You have to be really good to survive," said Michael Osanloo, CEO of PF Chang to "Business Insider.:

The industry has quickly been overpopulated with concepts, but Osanloo argues that in this market the bad restaurants just fail quicker. 

"It's been a constant dynamic. There are too many bad restaurants, for sure," said Osanloo. "And, I think what happens is that bad restaurants have really short shelf life. Good restaurants do really well."

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Here's How McDonald’s is Planning to Make a Big Push to Reduce Greenhouse Gas Emissions 

Here's How McDonald’s is Planning to Make a Big Push to Reduce Greenhouse Gas Emissions 

The fast food giant McDonald’s has announced that it is going greener with an initiative that will help to reduce the greenhouse gas emissions from it stores.

"Today, McDonald's announces it will partner with franchisees and suppliers to reduce greenhouse gas emissions related to McDonald's restaurants and offices by 36% by 2030 from a 2015 base year in a new strategy to address global climate change. Additionally, McDonald's commits to a 31% reduction in emissions intensity (per metric ton of food and packaging) across its supply chain by 2030 from 2015 levels. This combined target has been approved by the Science Based Targets initiative (SBTi)." 

The chain said that by 2030, this program will prevent 150 million metrics of greenhouse gas emissions from polluting the air. As the chain points out, this is equivalent to taking 32 million passenger cars off of the road for a year.

The initiative will be comprised of a group effort from McDonald’s franchisees, suppliers and producers. 

The chain is focusing on its restaurant’s energy usage, packaging and its beef production, all of which accounts for about 64% of McDonald’s total global emissions.

“We support beef production that’s environmentally sound, protects animal health and welfare, and improves farmer and community livelihoods, and we have done for over a decade. This global movement is gaining extensive momentum through conversations, collaborations, pilot programs, and global and local roundtables, and is helping influence not just beef in McDonald’s supply chain, but beef production around the world,” writes McDonald’s.

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