• Wall Street Journal, Friday, October 22, 2010 9:52 AM

Expecting commodity costs to rise between 2% and 3% next year, McDonald's intends to increase prices in the U.S. and Europe after holding tight since late 2009 and, in the process, gaining market share against competitors such as Wendy's/Arby's Group and Burger King, Paul Ziobro reports.

"We'll actively look at the opportunities and with some optimism, the economy will get stronger next year and we'll get price increases," CFO Peter Bensen says, without disclosing any details.

The Chicago Tribune's Emily Bryson York writes that McDonald's intends to continue building on its market-leading status by turning its attention to what's going on in "the refrigerator," by which it means the grocery store. Quoting president Don Thompson, Bensen says, "The refrigerator is starting to become a big competitor of ours." Exactly what that means in terms of what McDonald's intends to do in response, however, is also a bit of an enigma.

Technomic president Ron Paul says restaurant chains are at the most risk when consumers need to visit a grocery store just before grabbing takeout for dinner. "You're not going to pick up a burger and fries," he says, "but you can pick something up," such as lasagna or pizza.

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