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Old 09-21-06, 11:48 AM   #1 (permalink)
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McDonald's blames lack of exercise as major obesity cause

McDonald's blames lack of exercise as major obesity cause

PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Richard Gibson
Last Update: 2:50 PM ET Sep 20, 2006


DES MOINES, Iowa (MarketWatch) -- McDonald's Corp. (MCD), deflecting allegations that it's partly to blame for the rise in child obesity, said Wednesday the major villain is a sedentary lifestyle.
"If you eat too much of anything it's a problem if you don't exercise," Chief Financial Officer Matthew Paull told an investors' conference.
The lack of physical activity is a larger cause of obesity than caloric intake, he said. "There's no such thing as good food and bad food."
Alluding to the chain's promotion of what it calls a "balanced lifestyle," Paull said McDonald's takes the child obesity issue "seriously and will be part of the solution."
"...We're big, we're powerful, we can make a difference," the CFO said in describing the company's commitment to help deal with what many believe is among the most significant health issues facing the country.
In that regard, Chief Executive Jim Skinner said McDonald's soon would advertise "Happy Meal combos that fit into the (government's) recommended daily allowance guidelines." He didn't elaborate.
Although some critics question the chain's motivations in addressing childhood obesity, Paull insisted that "it's not about lawsuits. It's about being responsible."
He told investors at a Banc of America Securities conference, which was broadcast over the Internet, that while the "government is holding the public accountable, the truth is, it's about personal responsibility and choice."
Contending that "we do not believe that any restaurant is the cause of the problem," Paull noted that the average McDonald's customer in the U.S. eats at its restaurants three times a month. "So they're taking 87 meals someplace else."
Asked about a recent slowing in U.S. same-store sales growth, Paull said that while the rate of guest-count "build slowed slightly over the summer...our counts are now moving in the direction we want."
Paull said the August introduction of a chicken-based snack wrap, which was primarily designed to increase afternoon sales, was exceeding sales expectations.
The executives also told the conference that what the company calls a "flexible operating platform," or food-preparation system, would allow its restaurants to serve breakfast around the clock if customer demand justified the move. Now, U.S. restaurants stop serving breakfast after 10:30 a.m.

McDonalds blames Obesity on lack of Exercise
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