McDonald's exploring Dollar Menu price hikes: COO
A customer orders food from a drive-thru menu is at a McDonald's restaurant in Encinitas, California July 21, 2008.
Credit: Reuters/Mike Blake
LOS ANGELES |
LOS ANGELES (Reuters) - McDonald's Corp (MCD.N) said on Wednesday it is exploring price hikes on its popular Dollar Menu in a bid to protect profits as costs for beef, cheese and other items continue to rise.
McDonald's has used its Dollar Menu, which includes $1 double cheeseburgers and other items, to drive traffic amid a housing-led U.S. economic downturn. That dependence has put pressure on franchisees, who take the margin hit on the low-priced menu items.
"What fits on that menu will look different than now because it has to be profitable," said McDonald's Chief Operating Officer Ralph Alvarez on a conference call with analysts.
"We've got to make sure we're pricing smart, not just pricing low. We'll make the move at some point," Alvarez said.
(Reporting by Lisa Baertlein; Editing by Brian Moss)
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