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McDonald's to expand test marketing of Angus burger

May 15, 2007|From Reuters

McDonald's Corp. plans to expand a test of premium Angus beef burgers this summer, an executive said Monday.

Karen King, who oversees McDonald's 5,200 restaurants from Key West, Fla., to the Canadian border, said the company was "encouraged" by sales of the fancier Angus burgers in Southern California, where they have been test marketed since last year.

"We're going to be testing Angus burgers later this summer in one of the Northeast markets," said King, McDonald's East Division president. "With all test products we want to get a sense of different geographies and demographics so we're going to take it around the block here in the East."

The burgers are seen as a key way McDonald's is working to compete with rivals Burger King Holdings Inc. and Hardee's and Carl's Jr. parent CKE Restaurants Inc., both of which have been selling bigger, premium burgers for several years.

Expansion of the Angus burger test comes as Oak Brook, Ill.-based McDonald's works to extend the success of a 3-year-old turnaround that has revitalized sales at the world's largest restaurant chain. King, a 32-year McDonald's veteran, said new drinks such as iced coffee and tea and new chicken and breakfast products would be key to sustaining the company's momentum.

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