Would a Permanent McRib Boost McDonald's Earnings?

McDonald's MCD has been using the McRib to develop an almost cult-like following. Legions of fans call for the McRib to return to the restaurant's menu every year, and are appeased when it appears for about a month or so. Given its extreme popularity, would McDonald's benefit from adding the sandwich to its menu full-time?

According to studies, the McRib helped sales increase by 4.8% in November 2010. While that's a great boost, Wall Street analysts and business themselves seek consistent growth. As with many fads, the McRib has a cyclical demand. Consumers appear to clamor about the sandwich during the same time each year. If the McRib were added to the menu full-time, would we see the same trend? Would consumers not purchase many during one half of the year but buy a lot of McRibs in the other half?

The McRib is also considered a specialty item in the sense that it requires extra resources for each McDonald's restaurant. If you have ever eaten one, you know full well that the pork patty is lathered and marinated in barbecue sauce. In a fast food environment, the only way to efficiently make sandwiches with patties of this texture is to basically have a vat of patties submerged in sauce. The McRib is literally the only item in the menu that uses this particular mechanism, and uses extra space and time for maintenance. Would the minute costs add up to large headaches for McDonald's, thanks to economies of scale?

At this point, as McDonald's has only been promoting the McRib for about a month every year, it may not reserve dedicated distribution or production channels for the McRib. If it were to suddenly keep it on the menu full-time, it would have to sign pig farmers full-time as well. It would also have to increase distribution capabilities and increase marketing campaigns to maintain consumer demand. In other words, McDonald's may face significant costs if it were to seriously consider adding the McRib to the full-time menu.

McDonald's is a wildly successful company that seems to weather tough economic times. Its McRib sandwich has gained a unique following among consumers, but while it may be very popular, it may not be in McDonald's best interests to keep it as a full-time menu item.