McDonald To Offer $1 Drinks (MCD)

McDonald’s (NYSE: MCD) has decided to boost its summer sales with $1 drinks. The fast-food giant had used dollar-drink promotions before. McDonald’s (MCD) hopes to poach customers from rival fast-food chains. With Dollar-drinks, McDonald will also pose competition to convenience stores such as 7-Eleven.

However, drink discounts are likely to cannibalize McCafe sales. McDonald’s has admitted that customers generally choose dollar drinks over pricier beverages. However, its impact is not significant. The fast-food chain did not disclose the number of markets participating in the upcoming promotional event.