McDonald's to cut prices on some of its sandwiches as part of its

Journal Record, The (Oklahoma City), Apr 3, 1997 by Cliff Edwards Associated Press

CHICAGO -- McDonald's Corp. Wednesday formally announced its plan to roll back prices on some of its sandwiches, beginning with 55- cent breakfast sandwiches.

Starting Friday, the price of four breakfast sandwiches -- the Egg McMuffin; Sausage McMuffin with Egg; Bacon, Egg and Cheese Biscuit, and Sausage Biscuit with Egg -- will fall to 55 cents with the purchase of hash browns and any size drink.

"It's a new generation of extra value meals," said Ed Rensi, chief executive officer of McDonald's USA. "Value drives consumers more quickly than anything else today." Despite much grumbling, the chain's franchisees in late February overwhelmingly approved "Campaign 55," a yearlong program aimed at reversing flat or falling sales at McDonald's restaurants. McDonald's released more details of the plan Wednesday. In pointing to savings for consumers, McDonald's noted the Egg McMuffin was launched in 1972 for 65 cents. But in many cases, consumers will save little on the promotion because of the add-ons they must purchase with the sandwich. Franchisees also have discretion in setting menu prices, which could account for wide differences across regions and even within a particular area. But Rensi said the "My Size Meals" campaign could bring slight savings and customer appreciation by allowing consumers to choose any combination of sizes available. The company soon is expected to lower the price of the Big Mac to 55 cents, followed by other sandwiches later this year. Those sandwiches must be purchased under the same conditions. McDonald's main competitors, Burger King and Wendy's, have said they will not match the chain's rollback in prices, although both companies' strategy in the past has been to mimic McDonald's sandwiches and promotions. McDonald's, based in Oak Brook, Ill., also revealed Wednesday its sales at stores open at least a year, an industry measure of performance, have improved significantly so far in the first quarter. It attributed the improvement in part to aggressive advertising for lower priced Chicken McNuggets and on its Monopoly game campaign.