OAK BROOK, Ill. -- McDonald's Corp. Chief Operating Officer Ralph Alvarez said on Thursday that the fast-food chain will not pass all of the rising cost of commodities like meat, oil and dairy on to consumers. It has also switched oils for its french fries.
According to a Reuters report, the company said it remains committed to its low-price dollar menu that offers items such as double cheeseburgers for $1.
The menu has been popular with cash-strapped customers and has helped drive traffic to stores, which has helped to mitigate margin pressure from commodity costs, said the news [image-nocss] agency.
Also, McDonald's french fries are now trans-fat-free in all its restaurants in the United States and Canada, the fast-feeder said Thursday, according to the Associated Press.
McDonald's has lagged other restaurant operators in switching over to a zero-trans-fat cooking oil out of worries it would compromise the taste of its trademark fries, the report said. It has been under increasing pressure from consumer advocates and some public officials to make the change.
The new oil is canola-based and includes corn and soy oils, AP said.
CEO Jim Skinner told shareholders at the annual meeting at its headquarters in Oak Brook, Ill., that the new oil has been in use in U.S. restaurants for a few months now for french fries, hash browns, chicken, filet of fish and biscuits. He said McDonald's is on schedule to convert to the new oil by year's end for its remaining baked items, pies and cookies.
Skinner said the company decided not to advertise the changes.
McDonald's Corp. has nearly 14,000 restaurants in the United States.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.