Sluggish Returns for Big Mac

Toronto Star 19th Oct 1996

Chicago (AP)

Press Index

Spending the equivalent of $135 million to introduce the Arch Deluxe cheeseburger hasn't stopped beefs about McDonald's Corp sluggish US restaurant business.

The company reported yesterday that third quarter profits rose 10% but US operations performed sluggishly for the sixth consecutive quarter....

"You have to scratch your head when the Arch Deluxe was launched with one of the biggest marketing pushes ever, and their sales fall while one of their competitors is sailing along," said analyst Michael Kennedy of American Express Financial Corp in Minneapolis. "It would suggest that these products are not hitting their stated objectives."

[Has Mr Kennedy considered whether consumers have discovered that the corporation markets a low value, unhealthy product, with complete disregard for good environmental and labour standards?]

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