Minimum-wage hikes for fast-food workers will likely lead to pricier burgers, but job cuts aren't necessarily likely at Sonic, Chairman and CEO Cliff Hudson said Tuesday.
"I cannot tell you it will cause us to lose jobs because I don't know that's the case. The question is how much price elasticity we have in order to offset these costs," he told CNBC's "Squawk Box."
Opponents of the national campaign for a $15 minimum wage have warned higher pay could result in lower employment and more automation as franchisees struggle with added labor costs.
While many fast-food chains are large corporations, individual locations are often operated by franchisees, who are responsible for balancing sales and expenses at their restaurants.