Quick Hits: McRevenues
Brief scrutiny of today's headlines
Turns out McFlurries and McNuggets are recession proof.
McDonald's (MCD) is growing revenues in spite -- or on account – of a tough economic climate. According to Bloomberg, stores open at least 13 months saw a 7.7% uptick in sales in May.
In particular, domestic purchases increased as U.S. customers were (inexplicably) attracted to new breakfast chicken sandwiches and biscuits introduced in April. McDonald's is also planning to introduce lattes and cappuccinos to its menu nationwide later this year, a move that will put the fast food chain in direct competition with the venerable Starbucks (SBUX) in the specialty coffee arena.
Furthermore, budget-conscious consumers (and Dollar Menunaires) can breathe easy knowing that, despite the escalating cost of food, McDonald's has no plans to raise prices on its Dollar Menu.
Nor are prices expected to fluctuate owing to a recent shakeup in standard hamburger toppings. The fast food chain is voluntarily following FDA suggestions and giving the axe to tomatoes at its stateside locations after the plum, red Roma and red round varieties were linked to a salmonella outbreak.
Reuters reports McDonald's will continue to serve grape tomatoes in its premium salads, as these types have not been linked to the illness. Other purveyors of hot eats and cool treats following suit are Burger King (BKC) and Taco Bell (YUM).
For more on fast food, check out Hoofy & Boo's always astute report:
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