Shop Talk

Retailers, consumers and prices

Check Out Line: Taking on Starbucks paying off for McDonald’s

May 10, 2010

RonaldMcDonaldCheck out how the McCafe keeps perking up McDonald’s sales.

Last month, Ronald McDonald and company reported a strong first-quarter profit, showing that their bet on taking on Starbucks on its home turf has paid off.  And judging from McDonald’s April sales, that McCafe business — with its expanded lower-priced roster of coffees and new frappes — continues to caffeinate its results.

In April, sales at restaurants open at least 13 months (same-store sales, in the industry’s shorthand) were up 3.8 percent stateside, and did even better overseas, for a global average of 4.9 percent.

It wasn’t just Frappes that gave Mickey D its boost- old stalwart products such as its Chicken McNuggets did very well in April.  French fries with that, anyone?

Also in the basket:

Dean Foods profit drops, pulls guidance; stock off

Tyson Foods swings to profit, shares rise

No bargain for Qatar in Harrod’s sale (Breakingviews)

(Reuters photo)

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