McDonald’s Subjects Its Arch Deluxe to Grilling

McDonald’s Corp. on Wednesday said it is reevaluating its Arch Deluxe “adult” cheeseburger, a move some analysts say could lead to the burger’s demise.

However, a company executive said there were no plans to discontinue the sandwich, which was introduced with much fanfare a year ago, and that the Oak Brook, Ill.-based fast-food chain instead might cut prices to attract customers.

Analysts have estimated that McDonald’s spent $100 million to introduce the Arch Deluxe in May 1996, only to see customers turn their noses up at the relatively expensive burger.

Depending on the variety, the Arch Deluxe--which includes lettuce and tomato on a sourdough bun and can be ordered with bacon--sells for $2.09 to $2.49.

Other sandwiches in the Deluxe line include the Crispy Chicken Deluxe, a fried chicken breast sandwich; Grilled Chicken Deluxe, a marinated chicken breast sandwich; and the Fish Filet Deluxe.

Jack Greenberg, head of McDonald’s domestic operations, and other company executives met Tuesday with securities analysts and portfolio managers, disclosing in closed-door meetings that a review of the Deluxe line was underway.

“They all but said they are going to drop the Arch Deluxe,” Jeffrey Omohundro of Wheat First Butcher Singer told the Wall Street Journal.

But Richard Starmann, a McDonald’s executive vice president, said the company “has no intent right now to do anything with the Arch Deluxe.”

“The Deluxe line continues to do well generally throughout the country,” Starmann said. “Specifically with the Arch Deluxe, we’re looking at, is it priced appropriately in our restaurants in the United States?”

The chain is selling the burger and the Fish Filet Deluxe--the poorest-selling sandwiches--at lower prices in selected test markets, which Starmann declined to name. He said McDonald’s has no timetable for making a decision on what to do with the sandwiches.

McDonald’s shares rose 19 cents to close at $49.94 on the New York Stock Exchange.