The world’s biggest fast food chain, McDonalds has said that The McRib sandwich is one of the contributing factors that gets credit for increasing the restaurants fouth-quarter profits.
According to McDonald’s Corp., the restaurant chain saw net earnings of $1.2 billion, up 2.1% from the same quarter in 2009.
“During 2010, we continued our efforts toward becoming our customers’ favorite place and way to eat and drink – and customers rewarded us by visiting our restaurants more often,” CEO Jim Skinner said.
McDonald’s gave the credit to the limited-time McRib in its earnings statement:
‘In the U.S., ongoing emphasis on driving customer traffic, menu innovation and compelling value delivered industry-leading comparable sales growth during the fourth quarter, despite December’s sales being dampened by inclement weather. During the quarter, the U.S. reinforced the Company’s dedication to value and variety by featuring Chicken McNuggets, McRib and the everyday affordability of the food and beverage options available across McDonald’s menu.’
“We are off to a good start in 2011 – our momentum is continuing in January with global comparable sales expected to increase 4-5%,” Skinner said.
However, the company is rumoured to be increasing their prices due to the rise in costs of meat products last year.
McDonald’s (NYSE:MCD) Chief Financial Officer Pete Bensen said, “As commodity and other cost pressures become more pronounced as we move throughout the year, we will likely increase prices to offset some but not necessarily all of these cost increases.”
So is a McRib sandwich all the company need to stay afloat or will customers defer to cheaper fast food chains to avoid McDonalds rising costs?