The day after President Obama proposed an increase in the federal minimum wage — from the current $7.25 to $9 — during his State of the Union address, shares of McDonald's fell hard.

Marketwatch reported that Wednesday's performance of the Golden Arches accounted for about a quarter of the overall drop in the Dow that day.

McDonald's fell by $1.18, which was 9 points in the Dow's 39-point drop Wednesday.

The Huffington Post also reported that Burger King, Wendy's and Papa John's fell after the SOTU address.

Howard Silverblatt, senior index analyst for S&P Indices, told The Huffington Post that the President's minimum wage proposal "definitely adds some kind of pressure" to the stock prices of quick-service players. However, he stopped short of calling it a trend.

Peter Saleh, an analyst at Telsey Advisory Group, told Bloomberg that other factors, including last week's Blizzard Nemo, could also be affecting restaurant shares.

Read more about operations management.

Related Content

User Comments – Give us your opinion!
Products & Services

PeopleMatter SCHEDULE™

http://global.networldalliance.com/new/images/products/4628.png

4628/PeopleMatter-SCHEDULE

Digital Signage

http://global.networldalliance.com/new/images/products/4756.png

4756/Digital-Signage

LG 47WS50BS-B

http://global.networldalliance.com/new/images/products/6433.png

6433/LG-47WS50BS-B

SmartCombi™

http://global.networldalliance.com/new/images/products/6285.png

6285/SmartCombi

Supply Chain Solutions

http://global.networldalliance.com/new/images/products/4269.png

4269/Supply-Chain-Solutions

Remote Monitoring, Management & Measurment Software - CommandPoint

http://global.networldalliance.com/new/images/products/2260.png

2260/Remote-Monitoring-Management-Measurment-Software-CommandPoint

Interactive Kiosks

http://global.networldalliance.com/new/images/products/4758.png

4758/Interactive-Kiosks

Dual Core Menu Board Media Player - $99

http://global.networldalliance.com/new/images/products/6677.png

6677/Dual-Core-Menu-Board-Media-Player-99

LG 47WS50MS-B

http://global.networldalliance.com/new/images/products/6431.png

6431/LG-47WS50MS-B

Luzianne iced tea

http://global.networldalliance.com/new/images/products/6957.png

6957/Luzianne-iced-tea

CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.