McDonald's kicks up its drink options
The company is counting on frappes, smoothies and lattes to bring in $1 billion this year.
Pop quiz: What's expected to add $125,000 to the sales of each McDonald's restaurant in America this year?
The answer is beverages. And that's why McDonald's (MCD) has pounced on frappes, smoothies and other drinks as the economy struggles to improve.
McDonald's beverage line is also estimated to contribute $1 billion to the company's bottom line this year, Advertising Age reports. The company officially begins advertising the beverages this week.
Even before the ad push, McDonald's is seeing nice customer response, writes Emily Bryson York. Frappes helped boost same-store sales by 3.4% in May, the company said, and smoothies were also selling well.
Post continues after video:
Women are the most likely target audience here, York writes.
"Another important aspect of the premium beverages is the ability to build business in off-peak times," York adds. "While the drinks are an easy upgrade from a coffee or soda, smoothies and frappes also fit the bill for a late-morning or midafternoon snack."
McDonald's is also tinkering with its milk shakes, York writes. They're being served in clear cups with whipped cream and a cherry. And the company is doing a small test of ice-blended strawberry lemonade.
More from MSN Top Stocks:
- Could Happy Meal ban derail McDonald's?
- A McDonald's $5 billion makeover
- Can coffee perk up BK's breakfast biz?
- Weight Watchers teams up with McDonald's
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The fall in this sector has been so precipitous and lurking that we are just one more big miss and one more ugly deal away from taking down a good portion of the S&P 500.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.