McDonald's impressive profits, thanks to chicken
New chicken items have contributed to a strong second
quarter profits for McDonald's.
McDonald's reached a net income of $1.19 bln in its second quarter on total
sales of almost $6.1 bln, which has proven to be an impressive improvement over
the same quarter in 2007 when the company posted a net loss of $711.7 mln on
revenues of $5.8 bln.
McDonald's believes that this increase in sales is due, in part, to new
chicken items, the Southern Style Chicken Biscuit and Sandwich that were
launched earlier in 2008.
Menu changes to fight rising prices
The company announced that the rising cost of chicken, in combination with
a tough economy, will cause the chain to alter its popular dollar menu.
"In this current environment, we've got to make sure we're pricing smart,
not just pricing low," said Ralph Alvarez, McDonald's president and COO.
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