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McD near decision on Double Cheeseburger change

McD near decision on Double Cheeseburger change

OAK BROOK Ill. McDonald's said it would likely replace the Double Cheeseburger on its Dollar Menu with a new burger, called the McDouble, that has two hamburger patties but only one slice of cheese.

The swap, expected to occur within a few weeks, would make the $1 sandwich more profitable in light of escalating commodity costs. The chain also is discussing keeping the Double Cheeseburger, but raising its price to $1.19, said Greg Watson, vice president of marketing for McDonald's USA.

“These recommended changes will ensure we continue to satisfy our customers’ tastes and wallets,” Watson said in a statement.

Larry Miller, a stock analyst with RBC Capital, estimated that McDonald's would save 6 cents per sandwich by eliminating one slice of cheese, which could boost cash flow by $15,000 per restaurant per year.

About 85 percent of the 14,000 U.S. restaurants are franchised. Some franchisees, especially those in areas with higher real estate costs, have already raised the price of the Double Cheeseburger at their restaurants, complaining that the sandwich wasn't profitable at $1.

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