The move garnered praise from consumer advocates who criticize fast-food companies for luring children to eat unhealthy foods through the doling out of toys and trinkets, contributing to the nation's growing obesity problem.
McDonald's (MCD) recently faced a class action lawsuit over the use of toys in its famous Happy Meals, to which an executive for McDonald's New York region, Mason Smott, responded by arguing that "taking away toys from kids' meals won't solve childhood obesity."
Because of the popularity of its Happy Meals, McDonald's is one of the top toy distributors in the world. McDonald's is not alone in enjoying the success of kids' meals; chains including Wendy's Arby's (WEN), Sonic (SONC), Yum! Brands' (YUM) Taco Bell and Burger King, among others, also offer free toys in their kids' meals. Fast-food kids' meals toys have been called into question lately after a New York City councilman, following in the footsteps of a measure adopted in San Francisco and California's Santa Clara County last year, proposed that free toys be banned from fast-food meals intended to appeal to children unless the meals meet certain healthfulness guidelines. (Even McDonald's time-honored icon Ronald McDonald was called on to retire for the clown's peddling of fatty foods to kids.)
For Jack in the Box, its Los Angeles stores stopped offering toys with kids' meals as of Thursday.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV