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Makeover needed: McDonald's

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

McDonald's has been hit by one serious critique after another of food safety and nutrition. The company has gone from being a family chain to something only those desperate to save time or money want. There have been half-hearted efforts to modernize, but what McDonald's really needs is a complete menu makeover.

I'm not talking about changing away from hamburgers in all their infinite variety, either. But over the last couple decades the eating public has gotten a lot more picky and worried about getting fat or sick from mad cow disease or some contaminant.

There have been many serious critiques of their impact on worldwide nutrition. Eric Schlosser described in Fast Food Nation how mega-producer McDonald's uses butchering assembly lines. In an era of food safety concern, "a single fast-food hamburger now contains meat from dozens or even hundreds of different cattle." Morgan Spurlock examined in the movie Supersize Me and a related book what happens when an individual -- or a whole country -- eats too much McDonald's.

Of course, McDonald's is facing pressure from the other side, too. We want cheap food. Especially in a recession, people love the dollar menu. But McDonald's has just got to improve the food.

Continue reading Makeover needed: McDonald's

From concept to (big) mouthful: how McDonald's third-pounder came to being

Have you ever sat in a McDonald's Corporation (NYSE:MCD) outlet around lunchtime on a weekend and just watched? Chances are you'll see a family or two, and chances are, the young children will be in possession of a hamburger Happy Meal. And if the family you're watching is anything like mine, or my colleague's, you'll see a pregnant mom (that's me) or dad, with an empty Quarter Pounder wrapper, hungrily eyeing the last bites of the child's burger.

Maybe it was a sight like that that prompted franchisee Scott Frisbee, whose family owns 17 McDonald's restaurants in and around Anaheim, California, to develop the idea that McDonald's needed a premium burger. Maybe it was those ubiquitous commercials for the "six dollar burger" at rival Carl's Jr., a unit of CKE Restaurants, Inc. (NYSE:CKR), and the fact that his menu had no competitive item. Maybe he was just hungry. Either way, the progress of McDonald's Third Pounder from concept to its appearance on California menus is remarkable for its speed -- not to mention its success.

At $3.99, the burger is the most expensive sandwich the company has ever offered -- seemingly counter to McDonald's place in the country's subconscious as the cheapest place to get a family meal. At 720 to 840 calories depending on options, the sandwich seems contrary to America's hopeless striving to become healthier. And after a string of less-than-stellar new menu items in the 80s and 90s, the fast food chain had slowed to focus on its menu standards -- so however did this come to fruition so quickly and to such obvious acclaim?

Continue reading From concept to (big) mouthful: how McDonald's third-pounder came to being

Cramer sticking with Sonic (SONC) in a hot market

On MAD MONEY tonight Jim Cramer was trying to put the record market close in perspective; he said the conditions are perfect for some companies. One that is just right for the market? Sonic Corporation (NASDAQ:SONC). It's a fabulous restaurant chain, he says. The company did a Dutch tender for part of its stock, and this is great for holders at $23.00 per share for 19% of the company.

Cramer says two great things going for it are that 1) is a regional-to-national story, because it is only in 29 states, and light in California, and not even in New York; and 2) great fundamentals and good food and good management.

The stock closed up 1.2% at $22.49 and is now in after-hours up another 2.2% at $23.02; 52-week trading range is $17.85 to $23.65.

[Photo Beau Wade]

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Last updated: February 11, 2012: 09:16 AM

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