Higher Minimum Wage Boosting Fast Food Sales in California

Part of my job is analyzing the performance of fast food chains (McDonalds, Starbucks, KFC, Taco Bell, etc.), and conventional wisdom has been that minimum wage hikes coming in various states would hurt fast food profit margins due to higher labor costs.

It’s just one datapoint, but interesting to see that in California the minimum wage bumps over the last two years appear to be increasing sales at a rate that would more than offset that labor headwind.