McDonald’s Corporation (MCD) Hopes for More Fizz with Cheap Drinks

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McDonald’s Corporation (NYSE:MCD) is planning to reduce the price of drinks in April to draw in more customers.

McDonald's Corporation, MCD

This new strategy will have McDonald’s Corporation offering sodas of any size for $1. The fast food chain will also be selling its small McCafe drinks for $2 each. This includes smoothies and frappes. The chain will be running national advertisements to let customers know about the price reduction.

It is possible that this promotion is McDonald’s Corporation’s way of combating rising food prices.  Its decision to reduce the price of drinks may work out for it. The company has wider profit margins on drinks than it does on food. The idea is that the deal will help pull in customers without doing too much damage to its profits.

Jack Russo, an analyst with Edward Jones, says that fast food companies have been facing weak demand lately. He notes that many of these companies feel the need to offer new promotions to try and keep customers coming to their stores, reports Bloomberg.

“Our latest efforts in raising the bar for our customers include reinvigorating excitement for our beverages,” McDonald’s Corporation told USA Today. “This offer is part of our ongoing commitment to build a better McDonald’s, and we continue to listen to our customers in addressing their desire for great taste, high quality, value, and even more choice and flexibility than ever before.”

McDonald’s Corporation’s most recent earnings report saw its comparable same stores sales in the United States decline by 1.3%. While the fast food company’s All-Day Breakfast helped it out last year, the pizzazz it brought has started to wear off.

MCD stock was up slightly as of Thursday morning.

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