MCD Not Doing the Dew

The test with Pepsi products went flat

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Fast-Food Chains Go After Sit-Down Customers

"(MCD) has expanded tests of three varieties of
an Angus burger, a one-third pound burger patty
on a higher-end bun, to 1,100 stores, and it's
pleased with results thus far, spokeswoman
Danya Proud said."

WSJ article is HERE

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Coinstar to buy remaining stake in Redbox from McDonald's

Coinstar estimates that the cash-and-stock transaction, which is expected to become final on Feb. 26, will cost between $155.5 million and $175.9 million.

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MCD USA January Sales Up

Menu price increases and trading day adjustments
boost same store sales by 5.4%.
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Crain's Coffee Update

Some interesting quotes from analysts HERE

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How Much Advertising is Too Much Advertising?

On page nine of the aforementioned investor call transcript Ralph Alvarez
talks about the reduction in the cost of GRPs in the USA.

Isn't this a good time to look at rolling back the percentages
paid to OPNAD and Co-Ops to compensate for other P&L increases?

Why continue to give the Oak Brook bureaucrats (and the agencies)
more and more money to waste?

Now, Begin the Coffee Price Wars

...said Schultz. “We will combine our breakfast strengths with a value proposition that challenges misperceptions about our every day affordability.”
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Cutbacks at Starbucks

The Seattle paper reports 1,000 jobs
to be cut at headquarters and in the field.

McDonald's releases 4th quarter results on Monday and
Starbucks on Wednesday.

Of course this week the media will play it like McDonald's
is stomping on Starbucks.

Yup, 4,000 McDonald's stores selling 30 or 40 specialty
coffees a day is hurting Starbucks worldwide. Kind of
like when the Arch Deluxe killed off the Whopper.

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Survey commissioned by Ad Age: Americans are Cutting Back on Fancy Coffee Because of the Economy.

"As might be expected, those who had trimmed the expense the most were in the lower of the survey's income brackets (48.6% earned between $20,000 and $39,000, and 33.6% earned below $20,000)."
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McDonald's May be Recession Proof - But are Owner/Operators?

Zack's says "In the restaurant sector, we recommend companies that are actually benefiting from the recession as consumers "trade down" to cheaper eats."

Also, Zack's rates Jamba Juice as a "sell" because "Jamba faces a severe cash flow shortage that poses a risk of bankruptcy" - Isn't Jamba one of the brands CBB is meant to imitate?

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