McDonald’s To Up Prices Slightly This Year To Fight Inflation
January 18, 2011 | 1 min to read
McDonald's Corp will up prices 2 to 3 percent in 2011 to fight inflation, RBC Capital Markets said, raising the fast-food chain a notch to "outperform."
McDonald's has been taking U.S. market share from rivals like No. 2 hamburger chain Burger King as it tempted diners with low-priced food on its U.S. Dollar Menu, renovated restaurants and, in some markets, longer operating hours.
But November global sales were below expectations hit by weak demand in United States and Japan.
"Pricing should aid comparable sales and make it easier for McDonald's to deliver low- to mid-single digit sales," analyst Larry Miller wrote in a note.
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