OAK BROOK, Ill. -- McDonald's Corp. will raise the suggested price of its double cheeseburger, moving it off the Dollar Menu, according to a report in The Wall Street Journal.
The restaurant chain will recommend that franchisees sell the popular double cheeseburger for $1.19.
To replace it on the Dollar Menu, McDonald's will add a new McDouble burger. That sandwich is made with two all-beef patties and a single slice of cheese, one less than in the chain's traditional double cheeseburger.
An analyst estimated that the change will save six cents a burger, according [image-nocss] to the report.
The Oak Brook, Ill., company this summer said it was testing modifications to the double cheeseburger to cover higher costs for beef and cheese. In October, McDonald's indicated it was weighing the specific change announced Tuesday.
Similarly, rival Burger King Holdings Inc., Miami, has tested a smaller Whopper Jr. hamburger to combat ingredient costs.
For McDonald's, the change will help franchisees cover their costs while still offering customers an inexpensive burger at a time when low-priced food is particularly critical to its menu.
"Our customers tell us that value is important," Greg Watson, vice president of marketing for McDonald's USA, said in a prepared statement.
While other restaurant companies struggle, McDonald's continues to post strong sales growth during the economic downturn thanks in part to the Dollar Menu and other value-oriented offerings.
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