Smoothies Boost McDonald’s Sales, Spark Competition

After stirring up competition in the coffee business, McDonald's Corp. is now making its mark in smoothies, irking at least one high-end purveyor of fruit juice concoctions.

On Monday, the burger giant reported its highest monthly same-store sales gain since January 2009, thanks in part to sales of its new smoothies and other cold beverages.

Smoothie purveyor Jamba Juice Co. isn't taking the smoothie assault lying down. The Emeryville, Calif., company has been running a fake ad on YouTube mocking the idea of a burger chain getting into the business of smoothies. The chain's ad for the fake new Cheeseburger Chill Smoothie features a man and woman taking a break from jogging to enjoy a cheeseburger blended into a drink. More than 270,000 people have viewed the fauxmercial.

In case ribbing isn't enough,Jamba Juice on Monday also announced the "Great Smoothie Showdown," pledging to honor any McDonald's smoothie coupons at its Los Angeles, San Diego, San Francisco, Sacramento, Calif., New York, Chicago, Denver and Miami stores until Aug. 15.

To read the rest of the story, please go to: The Wall Street Journal.