McDonald’s dishing up more bargains

McDonald's Corp., based in Oak Brook, Ill., issued a profit warning last summer, saying it could not hit analysts earnings targets. The company, whose share price has dropped 21% in the past year, blamed some of the shortfall on the introduction of the euro. Weaker foreign currencies have hurt profits, it said.

The National Post
January 4, 2002

McDonald’s dishing up more bargains
Peter Kuitenbrouwer

Matching efforts by its U.S. parent to attract more budget-conscious diners, McDonald's Canada is ramping up its bargain deals and promotions, including a test in Ontario of a new "McMenu" which offers some burgers and sandwiches for 98¢.

In the United States, the company will unveil its new McValue Menu today in Southern California: 20 "quality products" for less than $1 each. The deal is available at 560 restaurants in the Los Angeles area, where McDonald's was born.

McDonald's in Canada has been feeling competitive pressure from, among others, Tim Horton's, and last October introduced chocolate chip and oatmeal cookies, at three for 89¢, to compete with the coffee-and-donut chain.

In mid-December McDonald's, Canada's largest fast food chain with over 1,170 restaurants, began offering its customers a cookie, a coffee and a coupon that can be exchanged for two Lotto 6/49 tickets, all for $2. One can also buy a coffee and muffin for $1.39.

McDonald's Corp., based in Oak Brook, Ill., issued a profit warning last summer, saying it could not hit analysts earnings targets. The company, whose share price has dropped 21% in the past year, blamed some of the shortfall on the introduction of the euro. Weaker foreign currencies have hurt profits, it said.

In Ontario, the chain has tried several promotions to draw in the crowds. Last November, McDonald's offered two Big Macs for $2, and consumers responded, breaking all records, the company said, eating five million Big Macs in a ten-day period.

In its McMenu promotion, which McDonald's began testing in Ontario in mid-November, patrons can buy either a McChicken, a Big Xtra burger, a Filet-0-Fish or an Egg McMuffin for 98¢, as long as they buy fries and a drink as well.

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