ILLINOIS -- The success of McDonald’s coffee and breakfast businesses could launch a move by Burger King to lower its prices on cheeseburgers, reports The Wall Street Journal.
McDonald’s reported November global same-store sales rose 8.2 percent, showing growth both in domestic and international markets.
In the U.S., same-store sales for the Oak Brook, Ill.-based chain grew 4.4 percent, thanks to the popularity of its value and breakfast menus and premium roast coffee, the Journal reports.
McDonald’s value menu has been a boon to the company’s bottom line and figures to do even bigger business with consumers skittish about the broad future of the economy. So much so that Burger King has threatened to start what amounts to a pricing war with its own value menu.
A memo to employees and franchisees from the Miami-based competitor leaked to the press last month indicated Burger King intends to test market a dollar double cheeseburger larger than the one currently sold by McDonald’s.
Burger King restaurants now typically charge well over $2 for that sandwich.
With the test, Burger King risks a repeat of costly burger battle in 2000 and 2003 that hurt many industry players.
“The fact remains that we are still at a double-digit disadvantage to McDonald’s and Wendy’s in ‘Best Value for the Money’ ratings,” Russ Klein, global marketing and innovation president for Burger King said.