McDonalds Dismisses that Annoying Little Starbucks

Unlike Starbucks (NASDAQ:SBUX) Howard Schultz who called McDonalds (NYSE:MCD) coffee "swill", McDonalds CEO Jim Skinner is at least diplomatic. I guess it is easy to be when you are kicking the other guy around out in the business world

McDonald's, is not losing breakfast business to Starbucks, CEO Jim Skinner said at a luncheon in Chicago last  Friday. When asked if Starbucks, which recently revamped its morning menu with healthier choices, has taken a bite out of McDonald's dominant share of the breakfast business, Skinner said: "No, I don't think so in terms of market share."

Starbucks last year rolled out a variety of healthy new breakfast items such as oatmeal and removed offensive-smelling ingredients from its hot breakfast sandwiches, rather than cutting them from the menu as was originally planned. "They've been all over on this idea of breakfast. First they were in, then they were out," Skinner said at a luncheon at Northwestern University's Kellogg School of Management.

"It's probably a good idea for them to get back into breakfast," he said. "I wish them well, but not too well."

Skinner ought not worry, Starbucks has not done much right the last two years....