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Beef price spike makes $1 McDouble harder to stomach

usa mcdonalds highest ingredient cost franchisees royalties

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#1 Hum

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Posted 12 February 2013 - 16:03

(Reuters) - McDonald's popular $1 McDouble cheeseburger, which has lured customers to the Golden Arches since 2008, is getting hard to sustain as rising beef prices threaten the company's profit margin.

The world's biggest restaurant chain launched a competing $1 Grilled Onion Cheddar Burger in December. It also made the new sandwich - with one beef patty rather than the McDouble's two - a star of current television commercials, a status it shares with the McDouble.

The dilemma for McDonald's Corp (MCD.N) restaurant operators is that the McDouble has the highest ingredient costs on the Dollar Menu, making it a bad financial proposition unless customers add high-margin sides such as french fries or soda.

"If the McDouble is all the customer buys, you lose money," said Richard Adams, a former franchisee who now advises the chain's restaurant operators. "Depending on what happens to beef prices, McDonald's management should be open to taking the McDouble off the Dollar Menu."

The decision would be a significant one. McDonald's gets 10 to 15 percent of its sales from the Dollar Menu and experts say the McDouble is one of the most popular items on it.

Many franchisees, who pay royalties to the parent company based on overall sales, have exercised their option to move the McDouble off the Dollar Menu by raising its price over $1.

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#2 psionicinversion

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Posted 12 February 2013 - 16:12

in the UK the pound saver menu isnt £1 most of the time highest i think is £1.29. no one complains cus we dont care. make it $1.30 if they want it theyll buy it

#3 +SOOPRcow

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Posted 12 February 2013 - 16:15

It's not just beef prices rising, it's everything that depends on corn. Going to see rising food costs across the board this year all because we use corn for fuel.

#4 Sir Topham Hatt

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Posted 12 February 2013 - 16:16

In the UK, the double cheeseburger is actually £1.49.

Hamburgers used to be 59p, cheeseburgers were 69p, but since the invention of the "pound saver menu", the double was always £1.29, steadily rising by 10p every 6 months/year to the £1.49 it is now.

#5 Geoffrey B.

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Posted 12 February 2013 - 16:16

i can honestly say i have never had a mcdouble i generally only eat chicken when i eat fast food.

#6 Astra.Xtreme

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Posted 12 February 2013 - 16:21

It's not just beef prices rising, it's everything that depends on corn. Going to see rising food costs across the board this year all because we use corn for fuel.


This is true. Here in the US, we had a horrible drought this past summer which ruined crops and forced farmers to sell off livestock.
So we all knew here that prices of meat and produce would go through the roof.

#7 goodbytes

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Posted 12 February 2013 - 16:26

In the UK, the double cheeseburger is actually £1.49.

Hamburgers used to be 59p, cheeseburgers were 69p, but since the invention of the "pound saver menu", the double was always £1.29, steadily rising by 10p every 6 months/year to the £1.49 it is now.


I've definitely had a 99p double cheese burger (plain, of course).. it didn't last long though i think it went to £1.19.

#8 threetonesun

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Posted 12 February 2013 - 16:56

I assume the horseburger will stay on the dollar menu.

#9 OP Hum

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Posted 12 February 2013 - 17:03

Time to water it down with horse meat ....

#10 FloatingFatMan

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Posted 12 February 2013 - 17:04

Time to water it down with horse meat ....


How do you know they're not already? ;)

#11 OP Hum

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Posted 12 February 2013 - 17:25

^ Oh I've suspected earthworms in the mix, for many years.

#12 leesmithg

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Posted 12 February 2013 - 17:38

Maybe McDonalds should source it's beef from a cheaper source.

Romanian beef is pretty cheap currently, then maybe the burger prices will remain cheaper.

#13 shakey

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Posted 12 February 2013 - 17:39

But McDonalds doesn't use real meat :p

#14 1941

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Posted 12 February 2013 - 17:41

They are hard to stomach at any price.

#15 I am Reid

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Posted 12 February 2013 - 17:49

the ratio of soy to beef is just going to get higher. I hate nothing more than when I go to buy just a regular box of burgers at the store, see it says "Beef patties", and only to find out when I get home that yea its beef, as well as half soy. All the people who claim you cant tell the difference when soy or turkey is substituted for beef are idiots. Now I either buy the ground beef myself and make the patties or only buy frozen ones that say specifically on the box "100% beef", and list only beef under its ingredients.



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