McDonald's prices were up 3 percent during the quarter and traffic fell, suggesting push-back from diners... This year promises to remain challenging for McDonald's as it grapples with record-high beef prices, labor cost increases, image-denting protests from its minimum-wage workers and aggressive competition from rivals that include Burger King Worldwide Inc, Wendy's Co and Yum Brands' Taco Bell as well as privately held chains such as In-N-Out Burger and Five Guys Burgers and Fries.


The lackluster results from McDonald's landed a few days after Chipotle Mexican Grill Inc, the popular burrito chain it spun off in 2006, said its first-quarter same-restaurant sales jumped 13.4 percent. Chipotle caters to a wealthier consumer than McDonald's and it serves on-trend food, including dishes made with organic produce and antibiotic-free meats. It is It is planning to begin raising prices at the end of this quarter to offset higher costs.

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