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John A. Gordon is Principal and Founder of Pacific Management Consulting Group (, an independent restaurant analyst providing research and niche earnings analysis, management consulting and advisory expertise to those who need to know about chain... More
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  • McDonald's broadly featuring $1 pricepoint 0 comments
    Jan 21, 2010 11:38 AM | about stocks: MCD, WEN, BKC

    McDonald's (NYSE:MCD) earnings are due tomorrow. We'd note while the McDonald's marketing machine is immense and still delivering multiple value, premium product focus and branding messages at the same time, they have gotten into the $1 pricepoint feature big time, particularly since the November timeframe.

    Via our field visits, we counted 5 menu items featured at $1 via instore posters: McDouble, sausage biscuit, sausage burrito, water, sweet tea. The Angus Burgers and 2 Sausage McMuffins for $3.50 are also featured, as are continuing McCafe messaging. A national FSI featured a perfect blend between dollar menu items, Angus, McCafe, breakfast, and buy one get one free offers.

    This dollar coverage will have implications for both Burger King (BKC), that was relying on it's $1 doublecheeseburger offer since last fall, and Wendy's/Arby's, also working a new value menu strategy.

    Our opinion is if MCD posts last quarter same store sales in the US at or above zero, and in rest of world above +3, the marketing plan is working and they are in position for future growth as economic conditions improve.  

    Disclosure: no stock positions
    Stocks: MCD, WEN, BKC
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