McDonald’s cashes in on chicken and eggs
Growth in breakfast sales and the addition of new chicken items on the menu are believed to be responsible for McDonald’s increased share price, which reached a seven-year high in 2006.
The company has attributed this year’s success primarily to the new chicken Snack Wrap sandwich, while US breakfast sales also rose 7 percent in the third quarter. There is also a strong and strengthening market for McDonald’s products in Europe.
McDonald’s intends to maintain its lead in the breakfast race in 2007 by testing the addition of breakfast meals to its popular dollar menu. Wendy’s is planning to add new breakfast items to its menu, while Burger King is reducing breakfast prices.
Chief Financial Officer Matt Paull says the company expects to return at least 10 billion dollars to shareholders from 2006 through 2008 (more than double the 4.3 billion dollars in cash returned from 2003 to 2005).
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