Despite coronavirus cases rising across Canada, many provinces are seeing the light at the end of the tunnel and are beginning to ease lockdown restrictions. However, the economic implications from the virus are far from over. Several meat processing plants in Alberta had to close down operations as a large number of employees became infected with the deadly virus; as a result, Canada’s food supply chain has been significantly compromised.
The closure of these meat processing facilities has lead to a shortage of meat across the country. Consequently, McDonald’s restaurants, which are a fast food favorite among many, have had to remove several items off their menu due to a shortage of meat. Thus far, the Angus burger will not be available on the menu for an undetermined amount of time, as well as bagels and McGriddles. In addition, McDonald’s has also stated it has no choice but to begin importing beef in the meantime in order to keep up with continued demand.
However, McDonald’s is not the only fast food restaurant negatively impacted by food supply chain disruptions. It’s rival, Wendy’s is also limiting the availability of some of its menu items at selected locations both in Canada and the US. Wendy’s staple beef patty has been a favorite among consumers, given the restaurant’s claim of never-frozen, fresh beef. Now, the fast-food giant has no option but to resort to single-patty burgers at some locations, while at others they are removing menu items completely.
Information for this briefing was found via Fox Business, CTV News, USDA, and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.