WSJ: US sales drop at McD after 55 cents promotion

Nation's Restaurant News, May 19, 1997

OAK BROOK, Ill. -- The Wall Street Journal reported that domestic sales fell 6 percent in the two weeks since McDonald's Corp. began its 55-cent Big Mac promotion.

Franchisees claim some consumers were confused about having to buy french fries and a drink to get the deal price, while others were put off by reports of certain franchisees raising fry and drink prices to compensate for the burger deal, the newspaper said.

A McDonald's spokesman, however, said the company was "pleased with the early response" to Campaign 55 and noted that it has seen "a considerable increse" in bundled-meal purchases, which has led to increased profits and cash flows. McDonald's said it would end the 55-cent price promotion on the Big Mac by early June and began offering the Quarter Pounder with Cheese at that price. Breakfast sandwiches will continue to be priced at 55 cents, the company said, while other sandwiches are rotated into the promotion at four- to six-week intervals.