McDonald's reported that same-store sales in July were flat worldwide, and it's getting some social-media flack because of its Olympics sponsorship — neither of which casts a rosy pall on the present reality of its business. But as the chain moves further into the new era of new CEO Don Thompson, it continues to innovate, test and probe for fresh ways to expand the brand, the franchise and its business model. Now those trials include breakfast in the wee hours of the night.

Thanks to the stagnating U.S. economy and greater competition globally, McDonald's reported that sales last month at stores open at least 13 months were unchanged worldwide while sales at domestic locations fell by 0.1 percent. Analysts had expected better on both counts. Meanwhile, because it's a purveyor of fat- and calorie-and sugar-laden products that global citizens want to eat — in contrast with the lean, healthy image of Olympians — McDonald's has been getting more criticism on Twitter than the two dozen other big Olympic sponsors, according to an analysis by WPP's MediaCom.Continue reading...

Just as McDonald's is gearing up its controversial sponsorship of the 2012 Summer Olympics in London that begins this week, the world's biggest fast-food brand is introducing a new US Olympics tie-in marketing program designed to continue to reposition the brand as at least a reasonable alternative for healthful fare in the eyes of American consumers.

"Favorites Under 400 Calories" is a new menu "platform" featuring existing popular food and beverage choices at McDonald's, in an attempt to remind customers that they have plenty of healthful and even diet-friendly choices under the golden arches. Team USA gold medal contenders hurdler Lolo Jones (above) and boxer Marlen Esparza are featured in a new series of commercials supporting the Olympics contest.Continue reading...

While they suffer from even more ignominy under a new glare induced by the HBO documentary series The Weight of the Nation, the roundly condemned purveyors of "junk" salt, sugar and calories aren't exactly lying low and saying their mea culpas. McDonald's, Coca-Cola and 7-Eleven are each fighting back in their own way.

Coca-Cola has launched a test of its own new "mid-calorie" sodas to join PepsiCo in trying once again the concept of a "hybrid" diet/non-diet drink even though other attempts by both companies to mine a moderately-minded market have failed. Coke plans to test Sprite Select and Fanta Select products this summer — with only half the calories, 70 of regular drinks per 12-ounce can — in test markets in Atlanta, Detroit, Louisville and Memphis.

Interestingly, Coke's new toe in the mid-calorie water will depend on a blend of sugar: Cargill's Truvia brand of natural sweetener stevia plus erythritol, a "sugar alcohol" (unlike the ingredients in PepsiCo's new, nationally available mid-cal, Pepsi Next, which includes sucralose and high-fructose corn syrup). That gives Coke a leg up on an "more natural" claim it might want to make for select beverages against Next.Continue reading...