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McDonald's sees success with Angus beef and iced coffee

Encouraged by sales of its Angus beef burgers in southern California, McDonald's Corp. (NYSE: MCD) is planning to expand its test marketing of the premium burgers to New England.

McDonald's comes late to the Angus burger trend. Rivals Burger King Holdings, Inc. (NYSE: BKC), Hardees and Carl's Jr. -- the latter two part of CKE Restaurants, Inc. (NYSE: CKR) -- have been selling the premium burgers for years. In fact, Hardees has just announced a new addition to its menu, a patty melt style Thickburger, also made with Angus beef.

The new burgers are part of McDonald's ongoing efforts at revitalization. Those efforts have included the introduction of new beverage choices, such as iced coffee, which is also expected to spread throughout the U.S. soon. Another part of that effort is a new advertising campaign, emphasizing career opportunities at McDonald's -- no doubt to try to change its image as a source of low-paying, dead-end jobs.

The revitalization appears to be working. Back in April, McDonald's reported a strong quarter, especially internationally. The share price has risen since then, and reached a 52-week high this morning.

Starbucks giving away iced coffee ... oops

try your coffee icedRemember those emails sent around 1999? "Please forward this email and Bill Gates will give you $1,000," it said. Something about an experiment Microsoft was conducting.

Starbucks unwittingly conducted an experiment in the forwarding behavior of its employees in the Southeast U.S., offering a coupon for one free iced coffee (between noon and 9 p.m.) via email. The email said to "try your coffee iced" and encouraged employees to forward the printable coupon to families and friends.

Some of the family and friends, evidently, have eBay seller accounts and printed out multiple coupons to sell. As the Oregonian noted, you could buy a pack of nine Starbucks free iced beverage coupons -- redeemable for anything from a regular iced coffee to a Frappuccino. While the AP is saying that Starbucks has rescinded the offer, according to the Oregonian, many stores were still honoring the coupons -- good through September 30, according to the fine print.

Starbucks can hardly afford to lose sales this month given its poor results last month, but what's worse: the small impact of those still forwarding the emails (and the few dozen being sold on eBay), or the negative PR of pulling a freely-given coupon?

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Last updated: November 24, 2009: 12:19 AM

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