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Coming price cuts at McDonald’s may signal a broader fast food price war
Legal News |
2025/09/01 12:28
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McDonald’s is cutting prices on some combo meals to woo back customers who’ve been turned off by the rising costs of grabbing a fast food meal.
The price drop may induce its rivals, who have run into some of the same pricing issues, to follow.
Starting Sept. 8, McDonald’s will offer Extra Value Meals, which combine select entrees like a Big Mac, an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a drink. Prices will vary by location, but McDonald’s said Extra Value Meals will cost 15% less than ordering each of those items separately.
To kick off the promotion, McDonald’s will offer an $8 Big Mac meal or a $5 Sausage McMuffin meal for a limited time in most of the country. Customers in California, Alaska, Hawaii and Guam will have to pay $1 more for those meals.
McDonald’s for years has seen a steady decline in visits from customers in the U.S. who have household incomes of less than $45,000 per year. CEO Chris Kempczinski said those consumers, and others, no longer see McDonald’s as a good value.
At a McDonald’s near the company’s Chicago headquarters, for example, a 10-piece Chicken McNugget meal costs $10.39.
Higher prices have been been a drag on sales. McDonald’s same-store sales ? or sales at stores open at least a year ? grew 2.5% in the April-June period, but that was mostly because of higher prices. Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter, McDonald’s said.
“Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10,” Kempczinski said during a conference call with investors in August. “That absolutely is shaping value perceptions in a negative way. So we’ve got to get that fixed.”
McDonald’s job has been made harder by prices that can vary widely around the country. In May 2024, after a post on X about a Big Mac meal in Connecticut that cost $18 went viral, McDonald’s called it an “exception” and noted that franchisees set prices for nearly all U.S. restaurants.
The company also blames higher costs. The average price of its menu items rose 40% between 2019 and 2024, McDonald’s said, to account for a 40% increase in the cost of labor, packaging and food.
But within a month, McDonald’s introduced a $5 Meal Deal, which combined a McDouble burger or a McChicken sandwich with small fries and a small drink. That deal proved so popular it was extended through this summer.
In January, McDonald’s added another promotion, letting customers buy a limited number of items for $1 if they bought one full-priced item. Those deals will remain alongside the Extra Value Menu for now, McDonald’s said.
Other chains are also seeking to grab the attention of potential customers. In late August, Domino’s launched its Best Deal Ever promotion, offering any pizza with any toppings for $9.99.
Overall U.S. fast food customer traffic fell nearly 1% in the second quarter, according to Revenue Management Solutions, a consulting company. The company said price increases were sharply lower than previous quarters, suggesting that chains are already offering more deals.
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Supreme Court makes it easier to claim ‘reverse discrimination’ in employment
Legal News |
2025/06/05 11:57
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A unanimous Supreme Court made it easier Thursday to bring lawsuits over so-called reverse discrimination, siding with an Ohio woman who claims she didn’t get a job and then was demoted because she is straight.
The justices’ decision affects lawsuits in 20 states and the District of Columbia where, until now, courts had set a higher bar when members of a majority group, including those who are white and heterosexual, sue for discrimination under federal law.
Justice Ketanji Brown Jackson wrote for the court that federal civil rights law draws no distinction between members of majority and minority groups.
“By establishing the same protections for every ‘individual’ — without regard to that individual’s membership in a minority or majority group — Congress left no room for courts to impose special requirements on majority-group plaintiffs alone,” Jackson wrote.
The court ruled in an appeal from Marlean Ames, who has worked for the Ohio Department of Youth Services for more than 20 years.
Though he joined Jackson’s opinion, Justice Clarence Thomas noted in a separate opinion that some of the country’s “largest and most prestigious employers have overtly discriminated against those they deem members of so-called majority groups.”
Thomas, joined by Justice Neil Gorsuch, cited a brief filed by America First Legal, a conservative group founded by Trump aide Stephen Miller, to assert that “American employers have long been ‘obsessed’ with ‘diversity, equity, and inclusion’ initiatives and affirmative action plans.”
Two years ago, the court’s conservative majority outlawed consideration of race in university admissions. Since taking office in January, President Donald Trump has ordered an end to DEI policies in the federal government and has sought to end government support for DEI programs elsewhere. Some of the new administration’s anti-DEI initiatives have been temporarily blocked in federal court.
Jackson’s opinion makes no mention of DEI. Instead, she focused on Ames’ contention that she was passed over for a promotion and then demoted because she is heterosexual. Both the job she sought and the one she had held were given to LGBTQ people.
Title VII of the Civil Rights Act of 1964 bars sex discrimination in the workplace. A trial court and the 6th U.S. Circuit Court of Appeals ruled against Ames.
The 6th circuit is among the courts that had required an additional requirement for people like Ames, showing “background circumstances” that might include that LGBTQ people made the decisions affecting Ames or statistical evidence of a pattern of discrimination against members of the majority group.
The appeals court noted that Ames didn’t provide any such circumstances.
But Jackson wrote that “this additional ‘background circumstances’ requirement is not consistent with Title VII’s text or our case law construing the statute.” |
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Judge bars deportations of Venezuelans from Texas under the Alien Enemies Act
Legal News |
2025/05/04 10:48
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A federal judge on Thursday barred the Trump administration from deporting any Venezuelans from South Texas under an 18th-century wartime law and said President Donald Trump’s invocation of it was “unlawful.”
U.S. District Court Judge Fernando Rodriguez Jr. is the first judge to rule that the Alien Enemies Act cannot be used against people who, the Republican administration claims, are gang members invading the United States. Rodriguez said he wouldn’t interfere with the government’s right to deport people in the country illegally through other means, but it could not rely on the 227-year-old law to do so.
“Neither the Court nor the parties question that the Executive Branch can direct the detention and removal of aliens who engage in criminal activity in the United States,” wrote Rodriguez, who was nominated by Trump in 2018. But, the judge said, “the President’s invocation of the AEA through the Proclamation exceeds the scope of the statute and is contrary to the plain, ordinary meaning of the statute’s terms.”
In March, Trump issued a proclamation claiming that the Venezuelan gang Tren de Aragua was invading the U.S. He said he had special powers to deport immigrants, identified by his administration as gang members, without the usual court proceedings.
“The Court concludes that the President’s invocation of the AEA through the Proclamation exceeds the scope of the statute and, as a result, is unlawful,” Rodriguez wrote.
In an interview on Fox News, Vice President JD Vance said the administration will be “aggressively appealing” the ruling and others that hem in the president’s deportation power.
“The judge doesn’t make that determination, whether the Alien Enemies Act can be deployed,” Vance said. “I think the president of the United States is the one who determines whether this country is being invaded.”
The chair of the Congressional Hispanic Caucus, Rep. Adriano Espaillat, D-N.Y., said in a statement the judge had made clear “what we all knew to be true: The Trump administration illegally used the Alien Enemies Act to deport people without due process.”
The Alien Enemies Act has only been used three times before in U.S. history, most recently during World War II, when it was cited to intern Japanese-Americans.
The proclamation triggered a flurry of litigation as the administration tried to ship migrants it claimed were gang members to a notorious prison in El Salvador.
Rodriguez’s ruling is significant because it is the first formal permanent injunction against the administration using the AEA and contends the president is misusing the law. “Congress never meant for this law to be used in this manner,” said Lee Gelernt, the ACLU lawyer who argued the case, in response to the ruling.
Rodriguez agreed, noting that the provision has only been used during the two World Wars and the War of 1812. Trump claimed Tren de Aragua was acting at the behest of the Venezuelan government, but Rodriguez found that the activities the administration accused it of did not amount to an invasion or “predatory incursion,” as the statute requires.
“The Proclamation makes no reference to and in no manner suggests that a threat exists of an organized, armed group of individuals entering the United States at the direction of Venezuela to conquer the country or assume control over a portion of the nation,” Rodriguez wrote. “Thus, the Proclamation’s language cannot be read as describing conduct that falls within the meaning of ‘invasion’ for purposes of the AEA.”
If the administration appeals, it would go first to the New Orleans-based 5th U.S. Circuit Court of Appeals. That is among the nation’s most conservative appeals courts and it also has ruled against what it saw as overreach on immigration matters by both the Obama and Biden administrations. In those cases, Democratic administrations had sought to make it easier for immigrants to remain in the U.S.
The administration, as it has in other cases challenging its expansive view of presidential power, could turn to appellate courts, including the U.S. Supreme Court, in the form of an emergency motion for a stay pending an appeal.
The Supreme Court already has weighed in once on the issue of deportations under the AEA. The justices held that migrants alleged to be gang members must be given “reasonable time” to contest their removal from the country. The court has not specified the length of time.
It’s possible that the losing side in the 5th Circuit would file an emergency appeal with the justices that also would ask them to short-circuit lower court action in favor of a definitive ruling from the nation’s highest court. Such a decision likely would be months away, at least.
The Texas case is just one piece of a tangle of litigation sparked by Trump’s proclamation.
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Court seems reluctant to block state bans on medical treatments for minors
Legal News |
2024/12/04 12:02
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Hearing a high-profile culture-war clash, a majority of the Supreme Court seemed reluctant Wednesday to block Tennessee’s ban on gender-affirming care for minors.
The justices’ decision, not expected for several months, could affect similar laws enacted by another 25 states and a range of other efforts to regulate the lives of transgender people, including which sports competitions they can join and which bathrooms they can use.
The case is coming before a conservative-dominated court after a presidential election in which Donald Trump and his allies promised to roll back protections for transgender people.
In arguments that passed the two-hour mark Wednesday, five conservative justices voiced varying degrees of skepticism of arguments made by the Biden administration and lawyers for Tennessee families challenging the ban.
Chief Justice John Roberts, who voted in the majority in a 2020 case in favor of transgender rights, questioned whether judges, rather than lawmakers, should be weighing in on a question of regulating medical procedures, an area usually left to the states.
”The Constitution leaves that question to the people’s representatives, rather than to nine people, none of whom is a doctor,” Roberts said in an exchange with ACLU lawyer Chase Strangio.
The court’s three liberal justices seem firmly on the side of the challengers. But it’s not clear that any of the court’s six conservatives will go along. Justice Neil Gorsuch, who wrote the majority opinion in 2020, has yet to say anything.
Four years ago, the court ruled in favor of Aimee Stephens, who was fired by a Michigan funeral home after she informed its owner that she was a transgender woman. The court held that transgender people, as well as gay and lesbian people, are protected by a landmark federal civil rights law that prohibits sex discrimination in the workplace.
The Biden administration and the families and health care providers who challenged the Tennessee law are urging the justices to apply the same sort of analysis that the majority, made up of liberal and conservative justices, embraced in the case four years ago when it found that “sex plays an unmistakable role” in employers’ decisions to punish transgender people for traits and behavior they otherwise tolerate.
The issue in the Tennessee case is whether the law violates the equal protection clause of the 14th Amendment, which requires the government to treat similarly situated people the same.
Tennessee’s law bans puberty blockers and hormone treatments for transgender minors, but not “across the board,” lawyers for the families wrote in their Supreme Court brief. The lead lawyer, Chase Strangio of the American Civil Liberties Union, is the first openly transgender person to argue in front of the justices. |
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