As Starbucks (NASDAQ:SBUX) attempts to move into the lunchtime sandwich business, McDonald's (NYSE:MCD) is exploring the possibility of offering a lineup of designer coffees. We've come across a couple of reports of test sites where the hamburger chain is offering real brewed lattes and cappuccinos, instead of the instant Ovaltine-like drinks that is its usual fare.

The test locations even have a staff barista such as you would find at SBUX. The offerings extend to flavored shots and biscotti. The test of the McCafe (their name) products is currently under way in western Michigan, Greenville, N.C., Rochester N.Y. and Los Angeles.

This seems like a clash of cultures (indie vs. NASCAR) to me, or perhaps a sign that individually prepared coffee drinks now hold all the cachet of a Pop-Tart. Still, I sense an incongruity in ordering a bacon and cheese biscuit with my half-whip skim-milk cappuccino.

Poor Krispy Kreme Doughnuts (NYSE:KKD), battered by stock analysts for its poor performance, by the health community for nutrition, and by Atkins devotees for its carboliciousness.

The company has begun to respond, though. In the past month, it has announced plans to remove trans-fat from the cooking process. (Will January of 2007 forever be remembered as the month trans-fat died?) Now it is about to unveil a whole wheat doughnut.

While a regular Krispy Kreme ring has about 200 calories, the whole wheat version will trim this to 180. By my calculations, this means that I can now eat 11 and still consume fewer calories than my normal breakfast of 10.

Looking at the aging U.S. population, I wonder if KK might not drive even more sales to the health conscious by adding Metamucil or Ducolax for some needed fiber?

KK is also pushing a Valentine's Day program for schools that still haven't noticed their students don't fit in their desks any more. Share the Love with Krispy Kreme will offer Valentine's Day cards good for a free ringer with the purchase of a dozen. Better yet, locations will be frying up special heart-shaped doughnuts, iced and sprinkle coated, that KK suggests would be perfect for your kid to take to school for the VD party!

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