January 18, 2011

McDonald's as an Inflation Play?

RBC Capital, and many MCD watchers, are counting on McDonald's
franchisees raising prices to provide future same store sales
increases. But can that happen?

I had lunch with my daughter at a Chili's yesterday. Her combo
was $6.00, mine was $7.00. Yes, we each had a $2.00 ice tea and
left a tip but how close is that to a Value Meal at McDonald's?

The analysts refuse to realize how many inflation pressured customers
will turn to the Dollar Menu and buy two meals for the price of one
Value Meal.

RBC comments are HERE


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