McDonald's is in the spotlight lately: what is the hourly pay for employees?

Published On Oct 22, 2024, 6:00 AM

Recently, McDonald's has been in focus regarding employee wages. As of 2021, the starting hourly pay for crew members at company-owned restaurants was increased to between $11 and $17 per hour, while shift managers can earn between $15 and $20 per hour, depending on the location. The average pay for McDonald's employees nationwide hovers around $13.27 per hour. Franchisees, who operate over 95% of McDonald's locations, set their own wages, which can lead to variations across different regions. Some franchisees in New York have raised wages to compete for workers, and California has enacted laws increasing the minimum wage for fast food workers to $20 per hour, which further influences pay structures.

Stock Forecasts

Given the increases in employee wages and changing employment landscape in the fast food industry, especially with legislative actions pushing for higher minimum wages, McDonald's is likely to face increased operational costs. While this can lead to localized price increases and potential worker retention benefits, the overall impact on profit margins could be negative in the short to medium term. Longer-term effects will depend on how well McDonald's manages these costs relative to sales growth and pricing power.

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