BELOW SUPERNAV drop zone ⇩

McDonald’s largest fry producer closes factory; CEO blames $5 meals

  • McDonald's $5 meal deal launched in May
  • Lamb Weston CEO says meal deals to blame for slow demand
  • Washington plant closed; 4% of employees laid off
An undated photo of french fries.

An undated photo of French Fries. (Getty)

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

Mortgage Calculator

This calculator helps you estimate your monthly mortgage payment. It adds up the loan payment (principal + interest), property tax, and insurance. The loan payment is spread out over the years of your loan term.

This is the total amount you're borrowing from the bank.
This is the yearly interest rate on your loan.
This is how long you'll take to repay the loan.
This is the yearly tax you pay on your property.
This is the yearly cost to insure your home.

Monthly Payment Breakdown

Principal and Interest: $

Property Tax: $

Homeowners Insurance: $

Total Estimated Monthly Payment: $

AUTO TEST CUSTOM HTML 20241015091101

AUTO TEST CUSTOM HTML 20241015091337

AUTO TEST CUSTOM HTML 20241015112425

(NewsNation) — “Do you want fries with that?”

America’s largest fast food chain may have a fry issue as its largest supplier shuts off production and cuts costs at its Connell, Washington, plant.

Lamb Weston, an Idaho-based company, announced the closure and a 4% cut in its workforce at the beginning of the month. The news comes as part of a restructuring plan expected to generate nearly $55 million of pre-tax cost savings for the company in 2025.

“Lamb Weston is confident in the world’s ongoing love of fries — the closure of one of our older facilities accounts for less than 5% of our production capacity, so this adjustment simply helps address a current supply-and-demand imbalance,” Lamb Weston spokesperson Teresa Paulsen said in a statement to TODAY.com.

Now, Tom Werner, the CEO of Lamb Weston, is blaming McDonald’s $5 meal deal, which was introduced back in May. The meal deal is supposed to provide an affordable option for American families, especially during a time when inflation remains the highest in recent history, but its popularity has caused many consumers to order smaller portions of fries than they did before.

“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,” Werner said.

He said the steps to close one of its plants and cut costs is an effort to remain proactive to improve operating efficiency, profitability and cash flows.

Food

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Cloudy

la

65°F Cloudy Feels like 65°
Wind
6 mph SW
Humidity
80%
Sunrise
Sunset

Tonight

Cloudy. Low 62F. Winds SSE at 5 to 10 mph.
62°F Cloudy. Low 62F. Winds SSE at 5 to 10 mph.
Wind
6 mph SSE
Precip
7%
Sunset
Moon Phase
Full Moon