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Meat and Poultry Industry NewsBurgers

McDonald’s cuts Angus burgers from menu

News Brief Feature
Image credit: Perdue
May 10, 2013

McDonald’s is dropping the Angus Third Pounders from its menu as part of a continuing shake-up of its offerings. Earlier this year, the restaurant chain dropped Chicken Selects and Fruit & Walnut Salad and was said to be evaluating the future of its Angus burgers, reports the Associated Press.

The website BurgerBusiness.com, which reported that the burgers were being dropped earlier Thursday, also said that it learned from McDonald's franchisees that the company intends to expand its line of lower-cost Quarter Pounders in coming months, including an option with bacon.

The company said in a statement that the Angus burgers and wraps were being removed to make way for new items and that they "may still play a future role on our menu."

Richard Adams, who consults McDonald's franchisees, said that the Dollar Menu has also made the Angus burger a less attractive option at around $4 to $5.

"When you can get four or five burgers off the Dollar Menu, nobody's going to buy the Angus burger," he said. "The Dollar Menu has become a real problem for these chains."

Another problem was that McDonald's wasn't able to raise prices on the Angus burgers, even as its own costs for beef continued to rise, said Howard Penney, a restaurant analyst with Hedgeye Risk Management. He said the chain didn't have that kind of "pricing power," meaning its customers wouldn't be willing to pay more than a certain amount for its food.

Source: Associated Press

KEYWORDS: angus burgers McDonald's

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