San Francisco Tries to Put Wet Blanket on McDonald's (MCD), Others

December 1, 2011 8:13 AM EST
Is San Francisco becoming a less-happy place? According to a report Thursday, that might be the case.

According to AdAge, San Francisco recently passed an ordinance -- called the Healthy Meal Incentive law -- that restaurants cannot give away a free toy unless a set meal has less than 600 calories in it, has fruits and veggies, and is accompanied by a beverage with no excessive sugars or fats.

It seems as if the campaign is aimed at McDonald's (NYSE: MCD), which gives away a free toy with it's Happy Meal offerings. McDonald's Happy Meal's generally are supplied with a cheeseburger, hamburger, or chicken nuggets, french fries, apple slices, and a drink. Though McDonald's recently made the move to place fat-free chocolate milk, apple slices, and smaller packs of fries in the meals, whether or not they meet San Francisco's requirements is still up in the air.

Accordingly, they're selling the toys for an additional 10 cents with the meal's, AdAge notes, which we're sure many parents wouldn't mind paying. Heck, McDonald's probably could sell the toys for a penny just so it's charging something, and abiding by the law.

McDonald's isn't the only franchise to give away toys in kid's meals; Yum! Brands (NYSE: YUM) Taco Bell and now-private Burger King also mimic the practice.

Further, legislation is also pending in Michigan and New York about healthy meal initiatives. According to data from the Centers for Disease Control and Prevention, about 12.5 million, or 17 percent, of U.S. children and adolescents aged 2 to 19 are considered obese, nearly triple the rate in 1980.

States could consider a minimum fee on the toys, because for a $4.00 meal, another 10 cents doesn't seem like that much to quell an antsy child.


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