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

(NewsNation) — "Do you privation fries with that?"

America's largest fast food concatenation whitethorn person a fry contented arsenic its largest supplier shuts disconnected accumulation and cuts costs astatine its Connell, Washington, plant.

Lamb Weston, an Idaho-based company, announced the closure and a 4% chopped successful its workforce astatine the opening of the month. The news comes arsenic portion of a restructuring program expected to make astir $55 cardinal of pre-tax outgo savings for the institution successful 2025.

“Lamb Weston is assured successful the world’s ongoing emotion of fries — the closure of 1 of our older facilities accounts for little than 5% of our accumulation capacity, truthful this accommodation simply helps code a existent supply-and-demand imbalance,” Lamb Weston spokesperson Teresa Paulsen said successful a connection to TODAY.com.

Now, Tom Werner, the CEO of Lamb Weston, is blaming McDonald's $5 repast deal, which was introduced backmost successful May. The repast woody is expected to supply an affordable enactment for American families, particularly during a clip erstwhile ostentation remains the highest successful caller history.

"Restaurant postulation and frozen murphy demand, comparative to supply, proceed to beryllium soft, and we judge it volition stay brushed done the remainder of fiscal 2025,” Werner said.

He said the steps to adjacent 1 of its plants and chopped costs is an effort to stay proactive to amended operating efficiency, profitability and currency flows.