McDonald's, Wendy's Sued Over Burgers Not Being Big And Juicy Enough

A Suffolk County resident is reportedly suing McDonald’s Corp MCD and The Wendy's Co  WEN, accusing them of defrauding customers by not selling burgers that are as big and juicy as the ones they advertise.

What Happened: Justin Chimienti sued the two fast-food chains on Tuesday, saying they use undercooked beef patties in their advertisements which appear 15% to 20% larger than what customers are served, reported Reuters.

The class-action suit was filed in Brooklyn federal court and is similar to the one filed in March by the same three law firms against Restaurant Brands International Inc QSR owned Burger King in Florida, according to Reuters.

The lawsuit stated that the actions of the defendants are “especially concerning” in light of inflation and soaring food prices, especially for lower-income consumers.

See Also: How To Buy McDonald’s (MCD) Shares

Why It Matters: The lawsuit seeks both compensatory and punitive damages arising out of alleged breach of contracts dating back to May 2016 and violations of consumer protection laws across the country, reported Reuters.

McDonald’s in April reported first-quarter earnings per share of $2.28, which beat the market estimate of $2.17. In May, Wendy's missed estimated earnings by 5.56%, reporting an EPS of $0.17 compared with a Wall Street estimate of $0.18.

McDonald’s CEO Chris Kempczinski addressed the “increased value sensitivity” faced by lower-income consumers in the U.S. due to rising gas prices and rent at the company’s earnings call.

Price Action: On Tuesday, McDonald’s shares declined 1% to $241.69 in regular trading. On the same day, Wendy’s shares closed 1.3% higher at $17.62, according to data from Benzinga Pro.

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