Beef Shortage Hits Wendy's, Leaving Some Restaurants With Limited Menus

CHICAGO (CBS) -- With many meat processing plants closed because of workers who are sick from COVID-19, fast food chain Wendy's is facing a shortage of fresh beef, leaving some of its restaurants with limited menus.

"It is widely known that beef suppliers across North America are currently facing production challenges. We continue to supply hamburgers to all of our restaurants, with deliveries two or three times a week, which is consistent with normal delivery schedules. However, some of our menu items may be temporarily limited at some restaurants in this current environment. We're working diligently to minimize the impact to our customers and restaurants, and continue to work with our supplier partners to monitor this closely," Wendy's said in a statement on Tuesday.

One analyst told CNN that nearly one in five Wendy's restaurants is not serving any hamburgers or other meat-based items. Financial firm Stephens said the fast food chain is particularly vulnerable to the national meat shortage during the coronavirus pandemic because of its reliance on fresh beef for its burgers.

Several meat processing plants are closed because of COVID-19 outbreaks, and President Donald Trump has signed an executive order invoking the Defense Production Act to keep plants open. The executive order also applies to plants that have already closed, which will have to re-open with healthy workers.

The executive order declares meat processing plants critical infrastructure to protect against disruptions to the food supply. The federal government will also provide workers with additional protective gear and guidance

Smithfield Foods is now considering next steps to reopen shuttered facilities, including its huge pork processing plant in Sioux Falls, South Dakota, where more than 200 workers were stricken. The company, a U.S. subsidiary of China's WH Group, said it would "make announcements when it is ready to resume operations in each location."

The president's edict came as a slew of meatpacking plant closures chopped U.S. pork production by about a quarter and reducing beef output by about 10%, according to the United Food and Commercial Workers union.

Tyson Foods Chairman John Tyson has warned in paid newspaper advertisements that the U.S. food supply chain "is breaking" and that millions of pounds of meat stand to "disappear" as processing plants close and farmers are forced to euthanize excess livestock they cannot sell.

(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The CNN Wire contributed to this report.)