McDonald's and Wendy's win a hamburger legal battle while Burger King preps for trial
By: Clark Schultz - SA EditorThe restaurant sector received some good news over the weekend when U.S. District Judge Hector Gonzalez dismissed a lawsuit accusing both McDonald's (NYSE:MCD) and Wendy's (NASDAQ:WEN) of misleading customers in advertising about the size of their hamburgers.
Judge Gonzalez ruled that he did not see proof that the fast-food chains delivered smaller burgers than advertised, or that the plaintiff Justin Chimienti had even seen ads for the McDonald's Big Mac and Wendy's Bourbon Bacon Cheeseburger that were the basis of the lawsuit. Chimienti's legal claim was based on ads he maintained were intentionally undercooked beef patties, which were allegedly much smaller than the actual regularly cooked versions encountered at McDonald's (MCD) and Wendy's (WEN) restaurants.
The ruling is a victory for McDonald's (MCD) and Wendy's (WEN) as they can continue with the advertising style. It could also improve the legal position of other chains such as Yum Brands' (YUM) Taco Bell and Restaurant Brands International's (NYSE:QSR) Burger King that also facing similar lawsuits regarding the accuracy of their product representations.
Restaurant Brands International's (QSR) Burger King is set to go to trial after a federal judge in the Southern District of Florida rejected a motion to dismiss a class action lawsuit over the chain making its Whopper burger appear larger on menu boards than its actual size. The judge in the case ruled that consumers could have reasonable relied on the depictions made on the menu boards. In the class action lawsuit filed against Burger King, the plaintiffs alleged that the Whopper's depiction on in-store menu boards made the Whopper look 35% larger and have ingredients that overflow over the bun. The lawsuit also claimed the menu boards indicated customers would receive double the meat that the sandwiches actually contained.
