Growing concerns over income inequality may force McDonald's to raise its wages.
According to the Huffington Post, McDonald's cited growing public concern over low wages as one of the possible risks that may impact the fast food chain's future. McDonald's listed its potential "risk factors" for 2014 in the most recent report to the Securities and Exchange Commission.
The public focus on the issue may reportedly "intensify" over the coming months. Higher wages could reportedly "hurt the fast-food giant's profit margins."
In the report, McDonald's defined the potential risk as the "long-term trend toward higher wages and social expenses in both mature and developing markets, which may intensify with increasing public focus on matters of income inequality."
McDonald's spokesperson Heidi Barker explained that the statement was a part of the chain's annual risk assessment. The fast-food giant is obligated to include information "regarding possible circumstances or events - whether in or out of our control - which may impact our future business performance."
Fast food companies, including McDonald's, have been under major pressure to raise wages for workers at various outlets. Workers from various chains have held several strikes, across the U.S. and have demanded that the minimum wage be raised to $15 per hour. In December, workers in the fast food industry held a one-day strike in 100 cities across the U.S.
Last year, McDonald's CEO Don Thompson claimed that the company has always been "an above minimum wage employer." The Huffington Post reported that the median wage for fast-food workers is about $8.90 an hour, which is an nearly two dollars more than the federal minimum wage of $7.25.
An online budgeting tool for McDonald's employees encouraged workers to get a second job in order to make at least $24,500 a year. The fast food giant's "McResource Line" receive major backlash for encouraging an employee to apply for food stamps.
