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OAK BROOK, Ill. -- Customers and investors can expect to soon hear about changes to McDonald's Corp.’s value menu, Crain’s Chicago Business reported.
CEO James Skinner said this week the chain is discussing the issue with franchisees and changes could involve its most popular sandwich, the double cheeseburger. McDonald’s has tested serving the sandwich with only one piece of cheese and calling it a double hamburger with cheese, and has also tested raising the price to $1.09 or $1.19.
"The dollar menu will stay, but there will be some tweaks to it," McDonald’s chief operating officer, Ralph Alvarez, said during a call with analysts.
The dollar menu accounts for about 14 percent of McDonald’s U.S. sales and helps bring bargain-hunting customers into the chain’s restaurants. But rising food costs, which McDonald’s expects to be up about 7 percent this year, have squeezed franchisees’ profits and cash flow, according to Crain's report.
McDonald’s has raised prices about 4 percent on its main menu items this year, but dollar menu prices have remained virtually unchanged over the last six years, Alvarez noted.