McDonald’s is making a big bet on coffeeMcDonald’s is making a big bet on coffee

This post is part of the On the Margin blog. 

McDonald’s Corp. this week quietly added new espresso-based drinks to its McCafé menu, including Caramel Macchiato, French Vanilla Cappuccino and Americano. 

It’s a huge bet that consumers will flock to the chain’s stores for a better lineup of beverages. McDonald’s has some evidence that it can work.

Beverages have arguably fueled McDonald’s sales strength so far in 2017. The chain in the winter started selling coffee for $1 and McCafe drinks for $2. When the weather warmed it made soft drinks available for $1. 

McDonald’s U.S. same-store sales increased 3.9 percent in the quarter ended June 30, at least in part because of those beverage bargains.

By comparison, Dunkin’ Donuts same-store sales g...