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McDonald's to downsize menu
(Agencies)
Updated: 2004-03-04 08:58 McDonald's Corp., battered by criticism of its
fatty foods, said it would eliminate Supersize french fries and soft drinks by
the end of the year, part of a swing toward pleasing health-minded customers and
simplifying its menu.
 McDonald's Supersize option, which includes a 7-ounce
carton of fries and 42-ounce fountain soda, has been targeted by critics as
contributing to a growing obesity crisis in the United States where more than
half the population is considered overweight or obese.
The world's largest fast-food company, which began offering Supersize
portions widely in 1994, said on Wednesday it is making the menu changes to
"support a balanced lifestyle" approach that is in keeping with other recent
moves to promote healthier behavior.
These include a planned national launch of a Happy Meal for adults called Go
Active! which comes with advice from a fitness expert. In the past year, it has
introduced several health-oriented foods, such as entree-sized salads and
healthy alternatives in children's Happy Meals, including milk and fruit.
McDonald's shares rose 56 cents, or 2 percent, to a 52-week high of $28.99.
"I think it's somewhat of a PR move," said Harris Nesbitt Gerard analyst
Matthew DiFrisco of the company's decision to eliminate oversized portions. "But
by simplifying the menu, you gain efficiencies and cost reductions, the
back-of-the-box type stuff."
A new documentary film, called "Super Size Me" illustrates the negative
effects of over-consumption of McDonald's food. The film has not yet been
released.
A McDonald's spokeswoman said that the menu changes are not related to any
impact of the film on public awareness.
"They had no connection whatsoever," said the spokeswoman, Lisa Howard.
The company has been reducing complexity of its menu, part of a broader push
to improve operations and service in its more than 13,000 U.S. restaurants.
"You assist in reducing the labor overhead, demands of the kitchen, and also
speed of service, which is very important," DiFrisco said.
Analysts said the change reflects McDonald's move away from discounting
toward an emphasis on foods with higher-quality ingredients and better profit
margins, such as the new salads and the all-white-meat Chicken McNuggets.
MARKETING MOVE?
In recent months, Oak Brook, Illinois-based McDonald's has been attempting to
align its brand with an active lifestyle, highlighted by a new global
advertising campaign called "I'm Lovin' It." Launched late last year, the ads
feature hip-hop music and a range of lifestyle scenarios shot outside of its
restaurants.
Its rivals, including Wendy's Corp. and Burger King Corp., have also been
progressively offering more foods that give consumers choices beyond the
traditional fast-food fare of burgers, fries and sodas.
Those changes come as concern over corporations' responsibility for public
health has been growing. Last year, McDonald's was the target of a high-profile
lawsuit filed on behalf of teenagers who alleged its food was the cause of their
obesity. The suit was twice dismissed from federal court.
A public health advocate gave McDonald's plans conditional support.
"McDonald's made a move in the right direction by stopping sales of
supersized french fries and soft drinks," said Michael Jacobson, director of the
consumer-advocacy group Center for Science in the Public Interest in a
statement.
"I hope it is an indication that the company is paying more attention to
obesity, heart disease, and other diet-related diseases," he said, adding that
he hoped other fast-food companies would quickly follow suit.
The Supersize fries contain 610 calories, 29 grams of fat, 390 milligrams of
sodium and 77 grams of carbohydrates, according to analysts. (With reporting by
Maggie Fox in Washington)
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