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McDonald's frappe sales outpace hot coffees
June 13, 2010
McDonald's executives have touted the success of their coffee program and its impact on same-store sales several times this year, including during the company's first quarter earnings call in April and earlier this month at the Sanford C. Bernstein Strategic Decisions Conference.But Crain's Chicago Business has found research that says sales of the brand's hot coffee drinks, including its espresso-based beverages, have fallen off drastically compared to 2009.
From the story:
Sales of hot-coffee drinks fell from about 55 a day per restaurant when they were launched in May 2009 to about 25 a day per restaurant earlier this month. In contrast, McDonald's is already selling more than 80 frappes a day per restaurant after rolling out the slushy drinks this spring, according to company data obtained by Crain's. The data provide the first comprehensive look at sales of specialty coffee, Oak Brook-based McDonald's largest menu expansion in three decades.
McDonald's president and COO Don Thompson said on the company's first quarter earnings call that its beverage program has provided a sales lift as Premium Roast Coffee and the McCafé espresso-based drinks continue to grow.At the Bernstein conference, he said Premium Roast is an important component of the beverage platform and had been providing strong sales lift.
Frappe sales have been brisk, even before the chain launched national advertising support, Thompson said at both events. McDonald's also said the new drinks contributed in part to its 3.4 percent U.S. same-store sales lift in May.
According to Crain's, some franchisees and analysts say the frappes are likely to be more successful because they are more like shakes, a popular McDonald's menu item. McDonald's sweet tea and Angus burgers also are doing well while the Mac Snack Wrap has not lived up to expectations.
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