A Hint That McDonald’s Bagged Coffee Might Be on the Way

by Nate Wooley | October 4, 2012 9:37 am

McDonald’s (NYSE:MCD[1]) could be planning to enter a new market, as a trademark filing made by the fast-food giant indicates an interest in selling ground or whole-bean coffee.

While it’s possible that the filing might merely be protective, it also might indicate that McDonald’s is planning to enter the bagged coffee market in a move similar to Dunkin Brands (NASDAQ:DNKN[2]) and Starbucks (NASDAQ:SBUX[3]). The market for bagged coffee tops $5.6 billion per year, according to The Wall Street Journal[4].

After the successful launch of McDonald’s McCafe line five years ago, the firm might be planning an expansion. Profits on its coffee products are higher than most of the company’s items and now represent more than 6% of total sales — up from 2% in 2004.

Starbucks recently took back its packaged-coffee business from Kraft Foods (NASDAQ:KRFT[5]), while Dunkin’ Donuts coffee is distributed though J.M. Smucker (NYSE:SJM[6]).

More from the jittery coffee world:

  1. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  2. DNKN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNKN
  3. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  4. according to The Wall Street Journal: http://online.wsj.com/article/SB10000872396390444223104578034913193077492.html?mod=googlenews_wsj
  5. KRFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KRFT
  6. SJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=SJM
  7. Don’t Sweat Panicked Coffee Headlines: http://investorplace.com/2012/09/dont-sweat-panicked-coffee-headlines-sbux-gmcr-dnkn-peet/
  8. Starbucks Debuts ‘One-of-a-Kind’ Verismo: http://investorplace.com/2012/09/starbucks-debuts-one-of-a-kind-verismo/
  9. Starbucks Starts Recycling … Muffins?: http://investorplace.com/2012/09/starbucks-starts-recycling-muffins/

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