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Burger King franchisees sue over $1 burgers

Interesting little battle shaping up in the fast-food realm, and it isn't between restaurants -- it is within one. According to the Associated Press, Burger King (BKC) franchisees are suing the company over its recent $1 double cheeseburger promotion.

The reason for the lawsuit is that the franchisees are losing money on the deal because the company is setting maximum menu prices, which Burger King is not allowed to do. The National Franchise Association (NFA), which represents more than 80% of Burger King's U.S. franchise owners, says that the promotion is forcing restaurant owners to sell the quarter-pound burger at a 10-cent loss. One Burger King franchisee said that the burger in question typically costs franchisees $1.10.

Continue reading Burger King franchisees sue over $1 burgers

McDonald's makes plans for the McDouble

McDonald's (NYSE: MCD) is planning to replace its Double CheeseBurger with a new sandwich called the McDouble.

The new cheeseburger will be a little less cheesy, with two beef patties but only one slice of cheese. Analysts estimate that the McStingy will cost about six cents less to make -- combined with the company's plan to raise the price to about the dollar mark, it could spell increased profitability for the chain.

"We want our customers to know they can depend on McDonald's to provide the everyday value and convenience they've come to expect, every time they visit our restaurants," said Greg Watson, vice president of marketing at McDonald's USA. "These recommended changes will ensure we continue to satisfy our customers' tastes and wallets."

Continue reading McDonald's makes plans for the McDouble

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Last updated: November 27, 2009: 06:20 AM

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