Monday, May 9, 2011

7 Summer Drink Creations That Could Juice Fast Food Stock Margins

McDonalds (NYSE: MCD ) has changed the fast food industry in many ways since
its first franchised location opened over 50 years ago. And one of its most
recent contributions is the idea that a burger joint can be a specialty drink
powerhouse, too. A 2008 study showed that Mickey Ds stores offering premium
McCafe coffees generated 15% more revenue than a standard location. So its no
surprise that every fast food joint under the sun is trying to get in on the
beverage biz. Specialty drinks are a high-margin business and are an easy way to
experiment with creative new flavors to reach new customers. The summer heat is
a perfect occasion for testing these thirst quenchers, and a laundry list of
quick-service restaurants are rolling out drinks that include a Double Stuff
Oreo shake, frozen strawberry lemonade and new zero-calorie sodas. Here are some
of the highlights: Starting in June, 7-Eleven will reinvent its iconic Slurpee
by rolling out cups with dual chambers, a high-tech valve and two straws that
let you drink one or two Slurpee flavors at a time.Why choose between Bruisin
Berry or Sour Green when you can have both? In May, McDonald's is rolling out
frozen strawberry lemonade as its latest McCafe specialty drink. This comes
after a previous summer launch of a new McDonalds smoothie menu . Drive-in chain
Sonic (NASDAQ: SONC ) has plans in May for a shake dubbed Double Stuff Oreo
Blast. As youll see, it looks like plain old Oreo shakes just dont cut it any
more. Wendys (NYSE: WEN ) sister restaurant Arby's is rolling out a Jamocha
Oreo Shake in May. Its a twist on the current coffee drink by adding chocolate
cookies. Yum. And while Arbys moves into coffee,  Dunkin' Donuts is moving
the other direction into soft drinks. DD will roll out a Mountain Dew Coolatta,
a frozen slush drink. Starbucks (NASDAQ: SBUX ) knows its niche, however, and is
bringing back its Mocha Coconut Frappuccino (starting today!) for a limited
time. Its amazing how many different ways you can flavor coffee, isnt it? In
mid-June, Cold Stone Creamery will debut a Cake 'n Shake premium drink made
with cake-batter ice cream and yellow cake pieces. Who says you cant have your
cake and drink it too? All of these drinks probably wont come cheap and thats
the idea. As fast-food restaurants look to boost margins amid food price
inflation, premium specialty beverages are the simplest way to juice the
numbers. As for who will win the summer drink wars, only time will tell. But it
sure will be a treat to test all these new offerings for yourself in the months
ahead.

No comments:

Post a Comment

LinkWithin

Related Posts Plugin for WordPress, Blogger...