Return of the Burger Wars

Posted on January 29th, by Foodio54 in Restaurant News. 1 Comment

It’s happened before. Maybe some of you can remember the McWar which happened about ten years ago during another U.S. Recession. McDonalds…tired of watching the Whopper come in to it’s own glory at the expense of the Big Mac tried to convince all of it’s U.S. franchised restaurants to sell the Big Mac at a loss-leading 55 cents.

It was a glorious time for the fast-food cost-conscious eater.

I’m only bringing this up because McDonalds has posted flat same-store sales numbers for December and with the current economy we may see them post flat numbers for January as well. Top Mickey D’s execs said that although McDonalds is not recession proof they are recession resistant and they are not worried about the current situation even though analysts are projecting them to only increase their same-store sales by a miniscule 1.5%.

McDonald�s share price fell $4.30, or 8 percent, to $49.80 in midday trading. Stock prices of several competing quick-service companies also fell, following the release of McDonald�s results, including Wendy�s, Burger King, Yum! Brands, and CKE Restaurants, operator of Hardee�s and Carl�s Jr.

CFO Pete Benson said that McDonalds has no plans to return to the “Burger Wars” of the past, but only time will tell. If any of these other fast-food burger companies start feeling the heat from slowing sales they may just start undercutting…and when that happens you can expect a domino effect to happen as the others will want to stay competitive.

Now we may not see 55 cent Big Macs again…but it would be nice :-)

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