The restaurant sector has spent the past 18 months trying to figure out how to reach consumers in a hypercompetitive and uneven economy. McDonald’s, which is set to report earnings after the bell Wednesday, has doubled down on value messaging to customers via Extra Value Meals and Snack Wraps, which will likely help to boost sales this quarter.
But the focus on value has caused frustrations at times among parts of the chain’s operator base.
The company rolled out new franchise standards for McDonald’s operators on Jan. 1, including assessing locations on how their prices deliver value. McDonald’s said its owners are still able to set their own prices, but the standards nonetheless shape and define how franchisees — which operate 95% of McDonald’s restaurants — run their stores.
A cohort of operators is standing ground in their ability to independently set prices.
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The National Owners Association, an independent franchisee advocate group, adopted a Franchisee Bill of Rights in August and circulated it in an email to members last month as the standards took effect, according to a copy of the message viewed by CNBC.
The last of the bill’s rights is the “right to set prices without fear of recourse,” which says, “Franchisees, as independent Owner/Operators, have the right to set menu prices for their restaurants based on their own business judgment and market conditions. This right exists irrespective of the pricing decisions of any national, regional, or local co-op or franchisor initiative. Franchisees must be free to manage their pricing strategy without fear of intimidation, or diminished support from McDonald’s or its affiliated entities.”
It also lists the “right to renewal and transfer,” giving owners the “absolute right to a fair and reasonable opportunity to renew franchise agreements … subject only to objective, clearly stated standards of approval.”
In December, McDonald’s told operators it would begin value assessments as part of its updates to franchising standards. Continued noncompliance could result in penalties or even termination.
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At the time, the company said its new standards would provide “greater clarity … to ensure every restaurant delivers consistent, reliable value across the full customer experience,” according to a memo reviewed by CNBC.
In a statement, McDonald’s told CNBC that the business model creates the opportunity for entrepreneurs to be in business “for themselves, but never by themselves,” adding, “As franchisor, we have a responsibility to protect the strength and integrity of the brand and ensure every Owner/Operator upholds the standards that make McDonald’s so successful, for the benefit of all. This includes showing up for customers with great value – a core expectation the majority of our franchisees understand and proudly deliver.”
Some operators bristled at the changes in recent Wall Street research. In a two-part survey of 20 McDonald’s operators released last month, Kalinowski Equity Research wrote that it asked franchisee contacts if they were in favor of the changes to national franchising standards. For context, McDonald’s said it has some 2,000 owner/operators in the U.S. franchise system.
“As it turns out, every single one of the franchisees who responded to this question said ‘No.’ This is the first time in the 20+ year history of our McDonald’s Franchisee Survey that all respondents to a Yes-or-No question have all provided the exact same answer,” Kalinowski wrote.
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Kalinowski also had operators quantify their relationship with McDonald’s corporate arm on a scale of 1 to 5, with 1 being poor and 5 being excellent. The average response received was 1.37, a “pretty noticeable step down from the October 2025 average response of 1.71,” the survey said.
Still, McDonald’s stock was one of the better performers in an abysmal year for the restaurant sector in 2025, rising 5%.
Kalinowski’s respondents also rated their business outlook for the next six months on a scale of 1 to 5, with 1 being poor and 5, excellent. The average response was 2.58, the best in the 11 quarters. Last quarter, CEO Chris Kempczinski said full-year cash flow was set to be solid for operators at the same time value investments were being made.
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“Throughout the quarter, McDonald’s seems to be doing a better general job of promoting value to quick-service consumers, or at least it’s doing so notably better than some other large, quick-service burger concepts are,” Kalinowski wrote.
Likewise, fellow firm BTIG recently upgraded the stock.
“We expect the change in value strategy and perception to lead to the most meaningful earnings growth for the company since 2023,” BTIG wrote.
| Revenue of $666.95M (-52.95% Y/Y) beats by $24.47M
Cal-Maine Foods, Inc. (CALM) Q3 2026 Earnings Call April 1, 2026 9:00 AM EDT
Company Participants
Sherman Miller – CEO, President & Director Max Bowman – VP, CFO, Treasurer, Secretary & Director
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Conference Call Participants
Heather Jones – Heather Jones Research LLC Pooran Sharma – Stephens Inc., Research Division Leah Jordan – Goldman Sachs Group, Inc., Research Division Benjamin Mayhew – BMO Capital Markets Equity Research Benjamin Klieve – The Benchmark Company, LLC, Research Division
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Presentation
Operator
Good morning, everyone, and welcome to the Cal-Maine Foods Third Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions]. Please note this call is being recorded. I will now turn the call over to Sherman Miller, President and Chief Executive Officer of Cal-Maine Foods. Please go ahead.
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Sherman Miller CEO, President & Director
Good morning. Thank you for joining us today. I want to remind everyone that today’s remarks may include forward-looking statements. These are based on management’s current expectations and are subject to risks and uncertainties described in our SEC filings. Let me start by sincerely thanking our teams across the organization whose execution, focus and commitment to excellence drive the operational and financial performance that underpins everything we do.
The hard work and dedication continue to set us apart, and these results are a direct reflection of their efforts. In February, we shared the sad news of the passing of long-time Board member, Jim Poole. Over more than 2 decades, Jim made a lasting impact on the company, and we extend our heartfelt condolences to his family and loved ones.
Today, we announced the appointment of Dudley Wooley to the Board to fill the vacancy left by Jim. Dudley brings deep expertise in risk management and governance, along with a strong track record of leading growth-oriented organizations and driving operational performance.
Pilots of a Delta flight contacted the wrong control tower during a landing attempt in New York City earlier this month in an alarming mix-up captured in newly surfaced flight audio.
The incident occurred March 15, when Delta Air Lines flight 5752, operated by Republic Airways, was flying from Washington Reagan National Airport in D.C. to LaGuardia Airport in Queens.
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Instead of reaching LaGuardia, the pilots appeared to radio the John F. Kennedy tower about 10 miles away, according to audio published on LiveATC over the weekend.
The baffling error prompted a go-around before the flight ultimately landed safely, the Federal Aviation Administration (FAA) told FOX Business Wednesday.
A Delta Air Lines Boeing 767 plane bound for New York’s John F. Kennedy International Airport takes off April 5, 2025. (Omar Havana/Getty Images / Getty Images)
According to the transmission, multiple control towers and pilots from other flights could be heard on the feed, with one pilot reacting in stunned disbelief as the mix-up came to light.
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The exchange began when the pilots identified themselves and requested clearance to land, prompting an air traffic controller to respond in apparent confusion.
“That’s … uh … Who?” the JFK tower controller asked. “I’m sorry, where are you?”
An airplane takes off near the control tower at Reagan National Airport in Arlington, Va., Oct. 8, 2025. (Brendan Smialowski/AFP/Getty Images / Getty Images)
Another unknown individual, who heard the interaction in the feed, reacted in disbelief, saying, “That’s crazy.”
The pilots then contacted the correct tower, announcing, “We’re going around.”
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The FAA confirmed the slip-up to FOX Business Wednesday, explaining the flight began a go-around, which aborts the landing approach and returns the aircraft to a safe altitude for another attempt.
“The flight crew of Delta Air Lines Flight 5752 performed a go-around on approach to LaGuardia Airport after incorrectly establishing communication with the John F. Kennedy air traffic control tower,” the FAA said.
“Air traffic control instructed the flight crew to switch to the correct frequency. No other aircraft were involved.”
Delta Air Lines confirmed to the New York Post that its flight crew was not on board the aircraft, which was operated by Republic Airways, according to FlightAware.
FOX Business reached out to Republic Airways for more information.
Tiger Woods of Jupiter Links Golf Club looks on before the match against the Los Angeles Golf Club at SoFi Center in Palm Beach Gardens, Florida, March 24, 2026.
Woods was arrested for a DUI after the accident in Jupiter Island, Florida, his second rollover in five years, and said in a statement on X that he would be stepping back from golf “to return to a healthier stronger, and more focused place.”
Woods did not provide a timeline for his return, only that he would be stepping away for a “period of time.”
On Wednesday, the PGA of America announced that Woods will no longer serve as captain of the 2027 U.S. Ryder Cup Team.
“We support his decision,” the PGA of America said in a statement on X. “We commend Tiger for prioritizing his long-term health and deeply respect the courage it takes to make such a personal decision.”
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The latest developments leave Woods at least temporarily at the fringes of the sport that made him a household name. The golf community has rallied around the sport’s biggest star as he vows to “focus on his health,” and the PGA Tour said in a statement that Woods has the organization’s full support.
“Tiger Woods is a legend of our sport whose impact extends far beyond his achievements on the course. But above all else, Tiger is a person, and our focus is on his health and well‑being,” the tour said.
Off the course, Woods has been serving as chairman of the PGA Tour’s Future Competition Committee since August. That group has been responsible for creating a vision for the future of professional golf.
A PGA Tour spokesperson said that Woods will return to that role when he is ready to do so.
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Golf Channel analyst and former tour pro Brandel Chamblee suggested it could be time for Woods to consider retirement following his latest accident. Woods, 50, has been recovering from various injuries sustained in his car crash in 2021.
“Why would he need to play golf anymore?” Chamblee asked Friday on the Golf Channel’s “Golf Central.” “I think he should probably ask himself that. Consider not playing golf anymore.”
Until Friday’s accident, Woods held onto hope that he would compete in the upcoming Masters Tournament this month.
Augusta National Golf Club Chairman Fred Ridley confirmed this week that Woods would not play.
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“Although Tiger will not be joining us in person next week, his presence will be felt here in Augusta,” Ridley said. “Augusta National Golf Club and the Masters Tournament fully support Tiger Woods as he focuses on his well-being.”
“Our thoughts are with our founder as he takes the time needed to focus on his health,” its CEO Hrag Hamalian said in a statement.
Woods’ apparel brand, Sun Day Red, also voiced its support this week.
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“He is not just our partner, he is our friend. We are here for him and we remain focused on the work we are building together,” the company said in a post on the Meta-owned Threads platform.
TGL, the indoor golf league founded by Woods and Rory McIlroy, declined to comment about Woods’ hiatus and potential return.
Woods made his first TGL playing appearance of the season for the Jupiter Links team last week in front of a notable audience. ESPN said nearly 1 million viewers tuned in to watch Woods’ return, making it the largest audience this season.
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Walmart-owned Sam’s Club said Wednesday it will raise its annual membership fee by $10.
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Starting on May 1, the warehouse club — which directly competes with Costco and BJ’s Wholesale Club — will charge $60 per year for basic membership and $120 for its higher-tier option. It currently charges $50 for club members and $110 for Plus members and last raised annual fees in October 2022.
In a statement, Sam’s Club said it has “adjusted our membership pricing to support the things our members love,” citing perks including its assortment, expanded hours and better curbside pickup and delivery options.
Still, those new fees will be below those of rival Costco, which charges $65 per year for its basic membership and $130 per year for its higher-tier option. Costco hiked its fees in 2024. The fees bring Sam’s Club in line with BJ’s, which charges $60 per year for its basic membership and $120 per year for its higher-tier membership.
Sam’s Club is hiking membership fees as its annual sales and membership grow. Net sales for Sam’s Club in the U.S. grew by about 3.1% to $93 billion last fiscal year, according to Walmart’s fourth-quarter earnings report. That growth has come in part from an expanding digital business: In the holiday quarter, the warehouse club’s e-commerce sales increased by 23% year over year. Store and website visits increased, too, with transactions rising 5.3% year over year in the same quarter.
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Higher gas prices, driven by the Iran war, have drawn more attention to one of warehouse clubs’ key perks: cheaper prices at the pump. Gas prices hit a nationwide average of $4.018 this week, according to travel association AAA. That’s the highest price since August 2022, when the Russia-Ukraine war drove up energy prices.
Sam’s Club does not disclose its membership count, but said that it hit a record high in the three-month quarter that ended Jan. 31. Membership for the retailer is estimated to be more than 30 million, with a similar proportion of members opting into the higher-tier level as at Costco, according to David Bellinger, a retail analyst for Mizuho Securities.
Based on the equity research firm’s estimate, the membership fee increase could bump up annual income from the subscriptions by more than $200 million. That would translate to a 2 cent annual earnings per share lift for parent company Walmart.
Membership fee increases for current members will take effect when they renew at the end of their billing cycle. Sam’s Club said it emailed members about the fee increase on Tuesday.
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As part of the fee change, Sam’s Club said members of its higher-tier level, called “Plus,” will be able to earn up to $750 per year in Sam’s Cash rewards on eligible purchases, up from $500 per year.
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