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Something completely different at McDonald’s: Fresh beef

NEW YORK (AP) — Coming soon to McDonald’s: Fresh beef.

The fast food giant said Thursday that it will swap frozen beef patties for fresh ones in its Quarter Pounder burgers by sometime next year at most of its U.S. locations. It’s a major change for McDonald’s, which has relied on frozen beef for more than 40 years. Employees will cook up the never-frozen beef on a grill when burgers are ordered.

“It’s a really hot, juicy burger,” said McDonald’s USA President Chris Kempczinski.

Fresh beef has been the biggest selling point at rival Wendy’s. Yet there are larger forces at work that have prompted other menu changes at McDonald’s, known for decades more for the billions of people served than its culinary choices. The world’s largest hamburger chain has been trying to improve its image as more people shun processed foods. Last year, it removed artificial preservatives from chicken McNuggets and cut out high-fructose corn syrup from its buns.

“Fresh, just as a word and a concept, still carries so much weight for customers,” said Robert Byrne, the senior manager of consumer insights at Technomic, a food industry market research firm. He believes the move to fresh beef will likely drive more people to the Golden Arches and help boost its image slightly.

McDonald’s is trying to stem a streak of adverse trends that led to an executive shake-up two years ago. The company brought in Steve Easterbrook as CEO to steer the company in a more promising direction. It’s an ongoing endeavor. Earlier this month, McDonald’s Corp. acknowledged that it lost 500 million customer transactions in the U.S. since 2012, mainly to other fast food rivals.

Big Macs and other hamburgers will still be made with frozen beef. But Kempczinski said McDonald’s is open to making changes to more of its menu items.

It tested the fresh beef Quarter Pounders for about a year, eventually bringing it to more than 400 restaurants in the Dallas area and Tulsa, Oklahoma. Customers ordered more Quarter Pounders and visited the restaurants more often, said Kempczinski. Franchisees were happy, too, asking to keep the fresh beef even if the company decided not to roll it out nationally.

It’s still too early to know if franchisees will raise their prices on Quarter Pounders, Kempczinski said. Employees will need to be trained to safely handle fresh beef and to cook the patties only when ordered. Frozen beef Quarter Pounder patties are typically cooked four or more at a time, and the burgers are left in a holding area until a customer orders it, Kempczinski said.

The Oak Brook, Illinois-based company said fresh beef Quarter Pounders will be available by the middle of 2018 at most of its 14,000 U.S. locations. Restaurants in Alaska, Hawaii and some airports won’t be getting the fresh beef, the company said.

While the announcement drew wide attention, McDonald’s shares were little changed Thursday, up less than 1 percent to close at $129.32.

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Contact Joseph Pisani at http://twitter.com/josephpisani

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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