McDonald’s to Cut Prices on Drinks as Industry Slumps



McDonald's to Cut Prices on Drinks as Industry Slumps

McDonald’s Corp., reeling from an industrywide restaurant slump and slowing growth from its all-day breakfast push, is looking to beverages to help perk up the business.

The world’s biggest food-service company, which last year focused its advertising on cheeseburgers and chicken sandwiches, plans to offer $1 sodas and $2 McCafe specialty drinks across the U.S. It’s turning to higher-margin beverages at a time when cheap grocery prices are prodding more Americans to eat at home. The drink promotion may also help McDonald’s cope with the eventual rebound in food costs.

McDonald’s has been revamping its menu and marketing since Steve Easterbrook took the helm almost two years ago. Along with the introduction of all-day breakfast, Easterbrook has relied more on discounts and promotions across the country. Last year, the chain advertised two-for-$2 and two-for-$5 deals to bring back diners they’d lost after nixing its popular Dollar Menu.

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