Tuesday, August 05, 2008

Agflation: End of $1 McDonald's Double Cheese?


ABC NEWS -- Since 2006, the price of bread has risen 24%, beef 4.4%, cheese 6.6%, and condiments, from ketchup to mustard to pickles, 3%. Rising food prices add a dime to the wholesale cost of every cheeseburger.

For McDonald's, the biggest change surrounds the star of its dollar menu, the double cheeseburger. Some franchises are now selling it with one slice of cheese instead of two. Others are raising the price by as much as 19 cents, taking it off the dollar menu altogether.

"The life of the double cheeseburger remains to be seen," Jeffery Bernstein, Lehman Brothers analyst, said. "They'll still sell it, but you might not be seeing it for a dollar for much longer." For McDonald's, the dollar deals drive traffic, accounting for 14% of sales.

HT: Reason

4 Comments:

At 8/05/2008 11:16 AM, Blogger Robert said...

It definitely is the star of the dollar menu. When you leave the pump and only have change left...McDonald's is the best option. I imagine at some point they use it almost as a loss leader. Where I live the Mickey D's is always packed, other burger joints not so much.

 
At 8/05/2008 12:38 PM, Blogger KauaiMark said...

Same here. The local MCD's is jammed after school and on weekends for $1 menu patrons. I'm there almost daily.

Can't afford some Froo-Foo place like "Cafe' Diem" http://www.amesbeat.com/cafe/cafe-diem.htm

 
At 8/05/2008 12:55 PM, Blogger Robert said...

That must be why MCD stock is one of the best performers in the Dow over the last 3 months. A Peter Lynch moment. :)

 
At 8/05/2008 5:46 PM, Blogger juandos said...

Hmmm, I wonder if this is just more sour grapes on the part of Lehman Brothers employees who missed their collective chance to jump into Micky D's when it was real cheap?

 

Post a Comment

<< Home