McDonald's set to offer specialty drinks

CHICAGO, Sept. 30 (UPI) -- McDonald's restaurants across the United States will begin offering specialty coffee drinks next year, including lattes and cappuccinos.

The sales items could potentially earn the McDonald's Corp. more than $1 billion annually, but would require a major revamping of all of its restaurants to be implemented, Crain's Chicago Business said Sunday.

"They are placing a lot of chips on this beverage plan," RBC Capital Markets analyst Larry Miller said of the move. "It is a great opportunity, but it really depends on how much it will cost."

To begin the implementation of the new menu items, McDonald's Corp. plans on upgrading 1,500 of its restaurants to be able to offer the new drinks by the end of the year.

The remaining McDonald's franchises would then have their locations upgraded by the end of 2008 based on the company's current plans.

Crain's said the company has agreed to pay half of the upgrades' estimated $25,000 cost, leaving the remaining costs for individual franchise owners.