On Monday, the burger giant reported its highest monthly same-store sales gain since January 2009, thanks in part to sales of its new smoothies and other cold beverages, according to a Wall Street Journal report.
Smoothie purveyor Jamba Juice Co. isn't taking the smoothie assault lying down. The Emeryville, Calif., company has been running a fake ad on YouTube mocking [image-nocss] the idea of a burger chain getting into the business of smoothies. The chain's ad for the fake new Cheeseburger Chill Smoothie features a man and woman taking a break from jogging to enjoy a cheeseburger blended into a drink. More than 270,000 people have viewed the fauxmercial.
In case ribbing isn't enough, Jamba Juice on Monday also announced the "Great Smoothie Showdown," pledging to honor any McDonald's smoothie coupons at its Los Angeles, San Diego, San Francisco, Sacramento, Calif., New York, Chicago, Denver and Miami stores until Aug. 15.
"While we aren't getting into the burger business anytime soon (or ever), we will continue to bring you the real, fruity goodness of our delicious smoothies (in over 30 customizable flavors) that we know you'll love," Jamba Juice said, according to the report.
In response, McDonald's said, "Our smoothies deliver a high-quality taste experience at a value that only McDonald's can offer."
On Monday, McDonald's said that sales in U.S. restaurants open at least a year rose 5.7% in July; globally, they were up 7%. Last month, McDonald's had said that July's global growth would be "in-line or better" than the 4.8% same-store sales increase seen in its second quarter.
The success of the new smoothies could be an indication that consumers are feeling more confident about making small splurges. When Starbucks reported earnings last month, it said customers were making more visits and spending more.
McDonald's president and COO Don Thompson told analysts last month that smoothie sales have been "blowing away the high-end projections" the company had for the new fruit-flavored drinks, which come in wild berry and strawberry banana.
Earlier this year, McDonald's said its McCafe espresso-based drinks had helped make coffee 5% of total sales, double what they were in 2006.
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