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Chicago Tribune
Chicago Tribune
Business
Samantha Bomkamp

Burger chains see payoff from combo meal deals

May 05--The country's biggest burger chains are seeing double. And triple.

McDonald's, Burger King and Wendy's are seeing new combo meal deals pay off after several years of declining combo sales. Purchases of combo meals for lunch and dinner rose 1 percent at the three restaurants combined for the 12 months ending in March, according to data from research firm NPD Group.

That's only a small percentage, but a 1 percent increase brings the total combo meals purchased in that period to 2.5 billion combo meals, NPD restaurant industry analyst Bonnie Riggs said. Consumers in recent years had been steering away from combo meals, which traditionally had only been presented as a sandwich, fries and drink offering, in part because they wanted more choices and the ability to customize, Riggs said.

In recent months, though, Wendy's, Burger King and McDonald's all have introduced new value meals that shook up that classic combination, and made choices more affordable. Wendy's first introduced a 4 for $4 meal last fall, featuring a Jr. Bacon Cheeseburger, chicken nuggets, small fries, and a small drink. McDonald's and Burger King soon followed.

Burger King offers a 5 for $5 deal which includes a bacon cheeseburger, chicken nuggets, small fries, a small drink and a chocolate chip cookie. McDonald's launched "McPick2," which it plans to evolve in several incarnations. That deal started as a 2-for-$2 offering, with a choice of four items, but was changed to a 2-for-$5 deal to offer pricier sandwiches like the Big Mac and Quarter Pounder with Cheese.

McDonald's, which is based in Oak Brook, said it's considering further changes to the McPick 2 offer but it hasn't provided details. The deal already is being tweaked in some areas of the country, with franchisees experimenting with different prices and combinations, and even bringing in breakfast items.

All three burger behemoths have said the combo meals have driven their overall financial results by bringing more customers in the door. Fast-food chains have been losing ground in recent years to quick-service joints perceived as higher quality, like Panera and Chipotle. And as customers defected for so-called fast-casual rivals, rising food and labor costs also were hampering burger chains' ability to offer cheap food. But easing food price inflation has allowed burger chains to offer more deals, which in previous years wouldn't have been as profitable, Riggs noted.

Riggs believes combo meals should continue to evolve as consumers demand more variety, Riggs said. Currently McDonald's McPick 2 is the only one of the three that offers choices.

"Consumers want choices, and they want to be able to mix and match," Riggs said. Burger chains, in large part, "still haven't addressed that need, but they are certainly addressing the value need."

sbomkamp@tribpub.com

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