OAK BROOK, Ill. -- McDonald's Corp. laid the foundation to perk up its beverage and breakfast offerings Tuesday with plans to add upscale coffee drinks, chicken biscuit sandwiches and breakfast burritos to its U.S. restaurants in the coming weeks, said the Associated Press.
The addition of espresso coffee drinks, which are being tested in more than 800 stores, will begin next year and will give McDonald's an important foothold into the lucrative $12 billion specialty beverage market. The rollout will likely take last through 2009, officials announced [image-nocss] Tuesday.
Following the success of its breakfast menu and drip coffee, observers have expected the world's largest fast-food company to dive into the fast-growing coffee business as a way to attract new customers to the chain. McDonald's also plans to add sweet tea, frappes, smoothies and bottled beverages to stores.
"We want to move from beverages as an accompaniment to a beverage destination," Don Thompson, president of McDonald's USA, said during a meeting with analysts at the company's Oak Brook, Ill., headquarters. "We believe the quality of the offerings will rival the best of class."
Ralph Alvarez, McDonald's COO, said, "We're getting it right in our restaurants by giving our customers more menu and beverage choices than ever before. We are an ideal destination for coffee and beverages delivered with the convenience, speed and value customers expect from McDonald's. In the U.S., we're moving forward with new research and ideas to bring this beverage opportunity to life in our restaurants."
In two weeks, McDonald's will begin selling a sausage skillet burrito to breakfast customers. It will launch a southern-style chicken biscuit next year.
Also Tuesday, McDonald's named a new CFO, while announcing plans to further scale back the number of company-owned stores in some parts of the world. Peter J. Bensen, 45, will become CFO in January. Bensen, the company's senior vice president and corporate controller, replaces Matthew Paull, who announced his retirement this year.
During a meeting at the company's Oak Brook headquarters, McDonald's said it would refranchise between 1,000 and 1,500 stores to local owners during the next three years. About 70% of McDonald's 30,000 restaurants already are owned by franchisees. "It makes us not just a global brand, but a locally relevant one," said Alvarez.
McDonald's has been working to pare the number of company-owned restaurants, but executives said Tuesday they have no plans to cede ownership of all stores to franchise owners.
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