'All-American' McDonald's higher as Burger King looks north


Shares of McDonald's (NYSE:MCD) are higher in premarket trading, showing little anxiety over a potential merger between Burger King and Tim Hortons.

Despite the threat of an expansion of the Tim Hortons chain, restaurant sector analysts see an opportunity for the marketing mavens at McDonald's to get quite busy with an "All-American" message to consumers.

MCD +0.4% premarket

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  • Nahila1
    , contributor
    Comments (26) | Send Message
     
    McDonalds is still experimenting with several different iniatives attempting to increase their revenue not only thru their company and franchised location operations but also now thru retail sales of their name brand coffee. Could this new addition just be a first step by McDonalds into the retail market if coffee sales are successful? In addition to many new restaurant concepts exhibiting and promoting fresh menu offerings, McDonalds is suffering mostly from it's own success in that the large volume of business, the overloaded complex menu offerings, and the ability to maintain any image as to freshness of their products seem out of reach. For example, they use frozen hamburgers instead of fresh (Wendy's burgers are never frozen) and those burgers are cooked in advance and placed in temperature controlled cabinets for a variety of later serving times when a customer orders their hamburger, then it is taken by tongs and made by the employees according to the menu item ordered. By using frozen beef, McDonalds can usually buy their beef in larger quanties at a cheeper price based on the cycle of beef supplies that are available on the market which vary during the course of the year. McDonalds then is at a big disadvantage to the new concepts like Five Guys Burgers and the several other recently opened restaurants that use fresh beef for their burgers just like Wendy's in that any outdoor hamburger grilled knows that fresh beef is far better tasting than the frozen burgers.
    25 Aug 2014, 11:43 AM Reply Like
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