McDonald's reduced the price of its Big Mac sandwich in Brazil by as much as 51 percent, dubbing the change a limited time promotion, albeit one that could endure as the chain's largest franchisee tries to stimulate sales.
The Big Mac began selling for BRL6 ($2.92) in Brazil on Wednesday, down fromBRL10.50 ($5.12) in Sao Paulo, and as high as BRL12.25 ($5.98) in other areas of the country.
At this new price, Brazil would now boast the seventh lowest price on The Economist magazine's “Big Mac Index” of 17 countries. At its previous higher price, Brazil had the fourth most expensive Big Mac in the world.
Arcos Dorados, McDonald's franchise operator in Latin America and largest franchisee in the world, said earlier this year that a slowdown in the Brazilian economy had affected the company's revenue somewhat, and would likely prompt action to stimulate sales.
Revenue for Brazilian restaurants open at least 13 months grew 5.6 percent in the second quarter, compared to the same period a year ago, and 52 new restaurants opened over the past 12 months have generated $26 million in revenue.
The Big Mac's new low Brazilian price is due to its new inclusion on the “Pequenos Precos” (“Small Prices”) specialty menu, which also included the classic cheeseburger at BRL3.50 ($1.71).
Source: Argentine Beef Packers S.A.
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